Funding Societies 63

In Malaysia, many entrepreneurs cannot easily access traditional banking services. They struggle to secure financing, even though they are the driving force behind local economic growth. Your investment gives these entrepreneurs access to capital and new opportunities.

funding gap emerging markets
Funding Societies
Company
Malaysia
Country

The project

In 2024, Malaysia had over 1 million micro, small and medium-sized enterprises (MSMEs). Together, they accounted for 39.5% of GDP and 48.7% of employment. Yet many of these businesses struggle to obtain loans from traditional banks. Their limited credit history, small loan amounts and short repayment periods often make them less profitable for banks to serve.

Entrepreneurs need capital to seize opportunities, whether to purchase new machinery, build up inventory, expand their business, hire additional staff or maintain stable cash flow.

Through Funding Societies, entrepreneurs gain access to financing tailored to their needs. Funding Societies is a digital lending platform that uses technology and data-driven risk assessment to quickly evaluate a business's financial situation. This allows the platform to offer loans that match entrepreneurs' needs in terms of amount and repayment period.

Your investment enables entrepreneurs in Malaysia to secure a loan and invest in the future of their businesses.

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

CEO
Kelvin Teo
Founded
2016-11-21
Location
Singapore
Sector
Financial services
Turnover
€9,026,270
Employees
600
€170,000raised
Fully funded in 35 minutes on 21 October 2026.
370investors
€170,000
target
6.0
%
Interest
12
months
Maturity
6
months
Repayments
A
B
C
D
E
Credit score
Growth financing
Euro

Impact

8
Lives improved

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. With Funding Societies, you can contribute to regional development and make a real difference in people's lives. Due to financial and political instability in Indonesia, Funding Societies has been rather cautious in Indonesia and they have not grown that particular portfolio since 2023, with Lendahand investments being raised for Funding Societies Malaysia as of July 2026.
 

Related blog posts

  • 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.