Empowering SMEs in Southeast Asia: The Story of Funding Societies

Funding Societies is a leading digital financing platform headquartered in Singapore, dedicated to empowering small and medium-sized enterprises (SMEs) across Southeast Asia. Operating under the name Modalku in Indonesia, which translates to “My Capital,” the platform has expanded its footprint to Malaysia, Thailand, and Vietnam, providing vital financial services to underserved markets. citeturn0search10

Founding and Growth

Established in 2015 by Kelvin Teo and Reynold Wijaya during their tenure at Harvard Business School, Funding Societies was conceived to bridge the financing gap faced by SMEs in the region. The platform connects SMEs seeking capital with a diverse pool of investors through a seamless online interface, facilitating loan amounts up to SGD 2,000,000 with tenures ranging from 3 to 12 months. In its inaugural month, the platform processed SGD 3 million in loan applications, disbursing approximately SGD 250,000. citeturn0search10

Expansion and Milestones

In January 2016, the company launched Modalku to cater to the Indonesian market. By June 2016, Funding Societies had originated SGD 7.8 million in loans through its Singapore platform. The platform’s commitment to innovation and financial inclusion has garnered recognition, including a 3rd place finish in the Monetary Authority of Singapore’s Fintech Awards in November 2016. Further solidifying its regional presence, Funding Societies expanded into Malaysia and Thailand, becoming the only SME digital financing platform licensed in four Southeast Asian countries. citeturn0search10

Leadership and Vision

The leadership team at Funding Societies is instrumental in driving its mission to support SMEs. Notably, Nicki Ramsay, formerly the founder and CEO of CardUp—a leading digital payments platform in Singapore acquired by Funding Societies in 2022—serves as the Chief Product Officer. Nicki advocates for a data-driven approach to revolutionize financial management for small businesses, emphasizing the importance of embracing risk and delivering impactful solutions. citeturn0search2

Corporate Culture and Values

Funding Societies fosters a collaborative and inclusive work environment. Initiatives like #MakingHERStory highlight the experiences of women leaders within the organization, promoting diversity and empowerment. For instance, Ella Lantang, a Senior Legal Manager in Jakarta, emphasizes the significance of authenticity and empowerment in leadership, reflecting the company’s commitment to nurturing talent and encouraging open communication. citeturn0search4

Investor Experience

While Funding Societies offers investors opportunities to support SMEs and earn returns, it’s important to acknowledge the associated risks. Investors have shared experiences of defaults, underscoring the need for due diligence and risk assessment when participating in peer-to-peer lending platforms. citeturn0search3

Conclusion

Funding Societies stands as a pivotal player in Southeast Asia’s fintech landscape, driving financial inclusion and supporting SME growth through innovative digital solutions. Its strategic expansions, leadership initiatives, and commitment to a supportive corporate culture underscore its role in shaping the future of SME financing in the region.