Funding Societies

Funding Societies (also known as Modalku in Indonesia) is a rapidly growing digital financing platform in Southeast Asia. It focuses on supplying short-term credit to SMEs that are often overlooked by traditional financial institutions, with a particular emphasis on the Indonesian market. The platform offers both secured and unsecured credit products with a term of less than 12 months, using a mix of automated and manual processes for credit assessment. With over €1 billion funded and a pace of around €42 million per month, Funding Societies' robust technology stack and comprehensive historical data set play a pivotal role in automating its operations.

The organisation operates via a hybrid model, using both crowdfunding and balance-sheet funding, typically split 50/50 but varying by region and quarter. Funding Societies Capital (FSC), a wholly-owned entity of the Funding Asia Group, is the official borrower where all balance-sheet lending is registered. This allows for more flexible loan funding, accommodating various borrower limits, loan sizes, government-supported programs, and rapid credit disbursements.

Serving both SMEs (by granting loans) and investors (by issuing notes for a fee), Funding Societies generates both interest and fee income. It has gained support from prominent venture capital investors such as Softbank and Sequoia and established debt investors such as Triodos Bank Capital and Innoven Capital, underlining its significance in the impact investing sphere.