Funding Societies (“FS”) is a very fast-growing digital financing platform in Southeast Asia providing short-term credit to under-served SMEs, in Southeast Asia with Indonesia being their largest market. They provide secured and unsecured products with a tenor of more than 12 months. This is done by a combination of automated and manual credit assessment and underwriting. FS has an extensive technology stack that is used to automate various parts of its business and possess a rich historical dataset. To date they have funded more than €1 billion and current funding pace is €42m/month
FS operates a crowdfunding platform as well as providing funding from its own balance sheet (“BS”) with on average a 50/50 split but varying across quarters and geographies. They have a hybrid model and are looking to fund FS Capital (“FSC”). FSC is the formal borrower and is the entity where all on-BS lending is booked. It is 100% owned by Funding Asia Group (“FAG”) that is also owning the other FS entities. All On-BS lenders to FS go through FS Capital. FSC is used to fund loans that cannot be crowdfunded due to single borrower limits for crowdfunding, ticket sizes (too small or large), government supported loan program (in Singapore) or credit disbursements that require a quick turnaround time
FS caters to both SMEs (providing loans) and investors (issuing notes to them, for a fee), implying both interest and fee income at all country entities and are backed by A-list (VC) equity investors, such as Softbank and Sequoia and have attracted established debt investors funding the On-BS lending, such as Triodos Bank Capital and Innoven Capital.
|Borrower||FS Capital Pte Ltd|
|Founded||21 November 2016|
|Active on Lendahand since||19 January 2021|
Financial information per 2020-11-30
|Equity / total assets||11.00%|
|Write-off ratio last 12 months||13.00%|
|% investment amount in arrears (>90 days)||1.20%|
The largest exposure of Funding Societies lies in Indonesia, where close to 90% of their loans are originated. Indonesia is a country in Southeast Asia and Oceania, between the Indian and Pacific oceans. Indonesia is the world's largest island country and with over 267 million people. There are about 58 million micro, small and medium-sized enterprises (MSEMEs) in Indonesia, responsible for around 99.9% of the employment in the country. These businesses are run by farmers, fisherman, craftsmen and local traders. Funding Societies is committed to improving societies in Southeast Asia through easy access to financing, and we achieve this by bringing SMEs and investors together on our platform. . The strong, broad-based impact of the pandemic on economic activity was illustrated by the 5.3% contraction in 2Q20. A rebound to 6.6% growth in 2021 is forecasted
Most recently funded project
New local partner Funding Societies will use the EUR 500,000 for working capital needs of about 60 SMEs in Jakarta, Bandung and Surabaya in Indonesia. The majority of these SME is engaged in eCommerce, agriculture & allied activities and wholesale trade.
- Local partner investment
- 10 new jobs
- 300 people reached