Gabriel Budi Sutrisno · · 1 min readFunding Societies’ Modalku cuts 18% of its workforce
The Modalku team / Photo credit: Modalku
With additional reporting by Jofie Yordan
Indonesia-based Modalku, a unit of SME financing firm Funding Societies, has laid off 38 employees in the country, which is around 18% of its workforce.
Modalku attributed the decision to the current macroeconomic environment.
“This is part of the company’s mission to help SMEs beyond lending, extending into payments, while transiting to a leaner organizational structure,” the company said in a statement.
Impacted employees will receive compensation in accordance with local regulations.
It’s unclear whether other markets of Funding Societies will also be affected. The firm also lends to SMEs in Singapore, Malaysia, Vietnam, and Thailand.
Funding Societies said that since being established in 2015, it has served nearly 100,000 businesses across its markets. The firm added that its default rate is under 2%.
Editing by Thu Huong Le and Lorenzo Kyle Subido
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