Funding Societies 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. 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
| Borrower | FS Capital Pte Ltd |
| Country | Malaysia |
| Head office | Singapore |
| Website | https://fundingsocieties.com/ |
| Founded | 21 November 2016 |
| Active on Lendahand since | 19 January 2021 |
| Credit score | A |
Financial information per 2026-06-30
| Portfolio Overview | €142,623,520 |
| Leverage ratio | 87.80% |
| Write-off ratio | 0.75% |
| % investment amount in arrears (>90 days) | 2.12% |
About Malaysia
Funding Societies is active in Malaysia, where it provides financing to small and medium-sized businesses that may have limited access to traditional forms of finance. Malaysia is a federal constitutional monarchy with a parliamentary system. The country is made up of 13 states and three federal territories, with powers shared between the federal government and the states. Malaysia has a diverse population, including Malay, Chinese, Indian and various Indigenous communities. It has a mixed, export-oriented economy and is one of Southeast Asia’s major economic hubs, with strong industries in manufacturing, services and trade.
Last funded project
MalaysiaFor Mohd, safety comes first. Through his company, Heron Solutions, he provides security solutions for businesses and individuals in Malaysia. Thanks to a loan from Funding Societies, he was able to expand his inventory and provide a safe environment for more people.