Funding Societies

funding gap emerging markets

Funding Societies (also known as Modalku in Indonesia) is a rapidly growing digital financing platform in Southeast Asia. It focuses on supplying short-term credit to SMEs that are often overlooked by traditional financial institutions, with a particular emphasis on the Indonesian market. The platform offers both secured and unsecured credit products with a term of less than 12 months, using a mix of automated and manual processes for credit assessment. With over €1 billion funded and a pace of around €42 million per month, Funding Societies' robust technology stack and comprehensive historical data set play a pivotal role in automating its operations.

The organisation operates via a hybrid model, using both crowdfunding and balance-sheet funding, typically split 50/50 but varying by region and quarter. Funding Societies Capital (FSC), a wholly-owned entity of the Funding Asia Group, is the official borrower where all balance-sheet lending is registered. This allows for more flexible loan funding, accommodating various borrower limits, loan sizes, government-supported programs, and rapid credit disbursements.

Serving both SMEs (by granting loans) and investors (by issuing notes for a fee), Funding Societies generates both interest and fee income. It has gained support from prominent venture capital investors such as Softbank and Sequoia and established debt investors such as Triodos Bank Capital and Innoven Capital, underlining its significance in the impact investing sphere.


General information

BorrowerFS Capital Pte Ltd
Head officeSingapore
Founded21 November 2016
Active on Lendahand since19 January 2021
Credit Score2.91

Financial information per 2020-11-30

Portfolio Overview€49,431,135
Leverage ratio11.00%
Write-off ratio last 12 months13.00%
% investment amount in arrears (>90 days)1.20%

About Indonesia

Indonesia is a republic with a presidential system. The country is a unitary state, which means the power is concentrated in the central government. Indonesia consists of hundreds of different indigenous ethnic groups; the largest and politically dominant group are the Javanese. Indonesia has a mixed economy, in which the public sector as well as the government play a big part. The country is the greatest economy in southeast Asia and a member of the G20.

Last funded project

funding gap emerging markets
+ 726 other investors

The female entrepreneur central to this project leads a successful workshop in Ho Chi Minh City. Her company crafts clothes to sell on local markets. A loan from Funding Societies helped her invest in and expand her business while securing materials. Will you encourage 51 other local entrepreneurs like her with an i...View project

18 months
6 months
Fully funded in 9 days on 22 September 2023.
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