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funding gap emerging markets
Indonesia

Funding Societies 27

  • Funding Societies
  • Invest in microfinance
  • + 881 other investors
  • Dennis runs a video production firm in Jakarta. His team's talent is the company's main asset, making securing loans from traditional banks challenging. Thanks to Funding Societies, he can now rent equipment to excel in Indonesia's film sector. Your investment empowers 37 like-minded entrepreneurs to achieve their goals.

    €250,000
    Amount
    6.00%
    Interest
    18 months
    Maturity
    6 months
    Repayments
    EUR
    Currency
    Amount€250,000
    Interest6.00%
    Maturity18 months
    Repayments6 months
    CurrencyEUR
      100%
      Fully funded in 58 days on 29 March 2024.

      Explore the project

      Funding Societies, known as Modalku in Indonesia, is a pioneering SME digital financing platform dedicated to enhancing financial inclusivity in the region. With a track record of providing over $3.2 billion in SME loans to around 100,000 SMEs across Southeast Asia, their impact on financial inclusion is big. While Indonesia is their primary market, they are also present in Vietnam, Thailand, Malaysia, and Singapore.

      Unlike traditional institutions that focus on longer-term, secured financing, Funding Societies offers SMEs the chance to acquire financing without collateral. This strategy provides these businesses a quicker pathway to credit. Kelvin Teo, CEO of Funding Societies, points out, "SMEs are underserved by traditional financial institutions because they are often perceived as risky. Funding Societies exists to empower them for growth through financing, payments, and other financial services."

       

      3.2.1. Rolling. Welcome behind the scenes of Dennis’ video production firm in Jakarta. 

       

      What social return could your investment generate? 

      Your investment enables Funding Societies to give out micro-loans to 37 e-commerce, agriculture, and wholesale business owners in Indonesia. 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 and maintain customer flexibility. Together with Funding Societies, you will enable SMEs to operate efficiently and continue 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.
      • With an investment of 1,000 euros, your expected return would be 1,060 euros.
      • Currency: EUR

       

      The story of Funding Societies

      Funding Societies specialises in facilitating financial access to underserved small and medium business owners across Southeast Asia. Their main operations are in Indonesia. In the past 5 years, it has financed over 815 million euros through 3 million+ business loans, engaging over 250,000 registered investors. Its mission centers around bridging the $320 billion SME funding gap in the region by bringing together SMEs and investors. By fostering financial inclusion, Funding Societies aims to stimulate economic growth and prosperity.

      Moreover, Funding Societies believes 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 being active in Southeast Asia, Funding Societies hopes to make a considerable impact on the regional economy, promoting financial inclusivity, and enhancing local wellbeing. 

      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 27
      CEOKelvin Teo
      Founded2016-11-21
      LocationSingapore
      SectorFinancial services
      Turnover€9,200,000
      Employees600
      Credit score2.91

      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 47 jobs are created
      • With this investment 211 lives are improved

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      We have already contributed to Funding Societies 27

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