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 2023-12-31

Portfolio Overview€129,577,465
Leverage ratio87.40%
Write-off ratio last 12 months0.75%
% investment amount in arrears (>90 days)5.00%

About Indonesia

Indonesië is een republiek met een presidentieel systeem. Het land is een eenheidsstaat, wat betekent dat de macht gecentraliseerd is bij de centrale overheid. Indonesië bestaat uit honderden verschillende inheemse etnische groepen; de grootste en politiek dominante groep zijn de Javanen. Het heeft een gemengde economie, waarin de publieke sector en de overheid een belangrijke rol spelen. Het land heeft de grootste economie in Zuidoost-Azië en maakt deel uit van de G20.

Last funded project