SoftBank backs Funding Societies’ $294m funding round

Funding Societies, a Singapore-based fintech platform, has raised US$144 million in a series C+ round led by SoftBank Vision Fund 2 and joined by VNG Corporation and Rapyd Ventures, among others. At the same time, the company received US$150 million in debt financing from institutional lenders from Europe, Asia, and the US.

Funding Societies co-founders Kelvin Teo (left) and Reynold Wijaya / Photo credit: Funding Societies

Founded by Kelvin Teo and Reynold Wijaya in 2015, Funding Societies is a lending company that can disburse anywhere from US$500 to US$1.5 million in loans to micro, small, and medium-sized enterprises in Southeast Asia. It currently operates in Singapore, Malaysia, Thailand, and Vietnam, as well as in Indonesia under the name Modalku.

Since its establishment, Funding Societies has disbursed more than US$2 billion through 4.9 million loan transactions.

The company aims to use the fresh funding to offer other financial services besides lending as well as to expand to new markets in Southeast Asia. It also plans to provide a US$16 million ESOP buyback program for both former and existing employees who meet eligibility requirements.

Between 2020 and 2021, the company raised a total of US$45 million in its series C funding round.

See also: Series SEA: Who’s investing in the region’s fintech startups?

Notably, VNG contributed US$22.5 million to the fundraise, which can also facilitate Funding Societies’ expansion in Vietnam.

Ryan Galloway, who was recently appointed as the fintech firm’s country director in Vietnam, said in a statement that Zalo messenger and ZaloPay wallet (both owned by VNG) can create “endless possibilities” for Funding Societies’ borrowers.

Other investors in the series C+ round include:

• EDBI
• Indies Capital
• K3 Ventures
• Ascend Vietnam Ventures
• Sequoia Capital India
• BRI Ventures