Funding Societies 58
Imagine this: you work incredibly hard on your farm, yet at the end of the season, you barely have anything left. For farmers in Indonesia, this was reality for years. Funding Societies helped change that by providing financial support to Beleaf Farms.
The project
Imagine: you work hard on your land, but at the end of the season you barely have anything left to show for it. Debts to middlemen pile up, and investing in your business feels impossible. For many farmers in Indonesia, this was a reality for years.
That had to change, thought Armit. In 2019, he opened his first farm in Indonesia, not just to grow crops himself, but to learn. He discovered that agricultural yields in Indonesia were structurally lagging behind those of neighboring countries in Southeast Asia. The reason? Farmers lacked access to quality seeds, knowledge and fair financing.
From that farm, he built Beleaf: an agricultural company that provides farmers with seeds, fertilizers, coaching and a guaranteed purchase price for their harvest. No more debts to middlemen, but stability and perspective.
To scale this approach, Beleaf turned to Funding Societies, a fintech platform that connects SMEs in Southeast Asia with private and institutional investors. With that funding, Beleaf grew from a single farm into a scale-up that now offers thousands of farmers a better livelihood.
With your investment in Funding Societies, you ensure that entrepreneurs like Amir can give more people a fair income.
Your investment
- Annual interest rate: 6%
- With an investment of €1,000 the expected total repayment is €1,045
- Maturity: 12 months
- Currency: EUR
Funding Societies
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.
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.
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