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funding gap emerging markets
Vietnam

Funding Societies 24

  • Funding Societies
  • Invest in microfinance
  • + 725 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 investment?

    €300,000
    Amount
    6.00%
    Interest
    18 months
    Maturity
    6 months
    Repayments
    EUR
    Currency
    Amount€300,000
    Interest6.00%
    Maturity18 months
    Repayments6 months
    CurrencyEUR
      100%
      Fully funded in 9 days on 22 September 2023.

      The project

      Located in the Binh Chanh district of Ho Chi Minh City in Vietnam, a hardworking woman runs her workshop with around twenty employees, primarily women. A well-planned loan helps this workshop run smoothly, allowing the owner to buy the necessary materials to prepare customer orders. The financing facilitates business growth and helps secure jobs, contributing to a steady local economy.

      Vietnam's economy is on a path toward stability and gradual growth; however, access to bank funding is limited. This mainly affects small business owners who struggle with challenges such as strict rules, lack of funds, and outdated technology. Small business owners can overcome these challenges with a short-term loan from Funding Societies. Access to financing can create lasting, positive change for the more than 800,000 SMEs in the country.

       

      What social return could your investment generate? 

      Your investment enables Funding Societies to give out micro-loans to 51 e-commerce, agriculture, and wholesale business owners in Vietnam. The activities of the digital lending platform contribute to financial inclusion in Southeast Asia. Microloans offer a pathway to local economic stability and the empowerment of women. 

      The loans allow hardworking entrepreneurs to acquire necessary materials, pay their workers, and maintain customer flexibility. Together with Funding Societies, you will enable SMEs to operate efficiently and maintain stable employment. 

       

      What financial return could your investment generate? 

      • An annual interest rate of 6%
      • The maturity of the loan is 18 months
      • Your investment will be repaid in equal instalments, along with interest, every six months.
      • Currency: EUR

       

      The story of Funding Societies

      Funding Societies specialise in facilitating financial access to underserved small and medium business owners across Southeast Asia. While their primary operations are in Indonesia, they recently broadened their activities to Vietnam. In the past five years, it has financed over 815 million euros through 3 million+ business loans, engaging over 250,000 registered investors. Its mission centres around bridging the region's $320 billion SME funding gap by bringing together SMEs and investors. By fostering financial inclusion, Funding Societies aim to stimulate economic growth and prosperity.

      Moreover, Funding Societies believe in the principle that 'Stronger SMEs create Stronger Societies'. Its business model contributes directly to this vision by enabling SMEs to become key drivers of economic growth and job creation. By extending its services to countries like Vietnam, Funding Societies hopes to considerably impact the regional economy, promote financial inclusivity, and enhance local well-being. 

      By investing in Funding Societies you are not just investing in a financial platform; you are directly contributing to the growth of societies and economies across Southeast Asia.

       

      Funding Societies in numbers

      • Founded in 2015 with headquarter in Singapore
      • 600+ employees
      • Financed > €3 billion in loans
      • Disbursed > 80,000 SME loans
      • Active in 5 markets across Southeast Asia: Indonesia, Vietnam, Thailand, Malaysia, and Singapore
      Company nameFunding Societies
      CEOKelvin Teo
      Founded2016-11-21
      LocationSingapore
      SectorAgriculture
      Turnover€9,200,000
      Employees600
      Credit scoreB+

      Impact

      SMEs comprise about 60% of Southeast Asia's GDP and provide most jobs, but they face a $320B financing gap. Funding Societies has stepped in to bridge this gap, financing over €815 million through more than 3 million business loans in the last five years. Their focus lies in short-term credit, typically under 12 months, tailored to meet the needs of SMEs.

      The impact of their loans is significant. About 76% of SMEs use their loans for working capital. Many acknowledge that this financing was essential to keep their businesses open and maintain their workforce. Furthermore, Funding Societies fosters women's economic empowerment by supporting female entrepreneurs, who comprise 24% of their borrowers.

      Investing in Funding Societies on Lendahand promotes financial inclusion and social mobility in Southeast Asia, more specifically in Indonesia and Vietnam. With Funding Societies, you can contribute to regional development and make a real difference in people's lives.

       

      SDGs impacted

      With this project, you are contributing to the following Sustainable Development Goals:

      SDG 1 - No poverty

      SDG 8 - Decent work and economic growth
       

      Read more about the impact you can make through our platform and the SDGs on our impact page.

      Related blog posts

      Read the introduction of Funding Societies as an investment opportunity here.

      Want to learn more about Funding Societies? Read our email interview with CEO Kelvin Teo here.

      Curious about the impact Funding Societies and Lendahand create together? Watch our interview with Funding Societies’ COO and impact manager, Vikas, here.

      • With this investment 51 jobs are created
      • With this investment 227 lives are improved

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      We have already contributed to Funding Societies 24

      Olaf Janssen
      Bas van de Haterd
      Jan van Munster
      Elise Brouwer
      Henk Stegeman
      + and another
      725
      investors