Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.
Hello reader,
In sports, we learn a lot more about ourselves from losing than we do from winning.
When victorious, you can gloss over every little mistake you made along the way, as it all worked out in the end. But when you end up on the wrong end of the scoreline, you are forced to be very self-critical. And if you look at your errors honestly, you can gain a lot of valuable knowledge.
This also applies to other fields, including business. When all things are well and your key metrics are positive, it can be tempting to stop looking for ways to improve. When dealing with loss, however, a company may view the setback as an opportunity to learn and become better.
Just take a look at Funding Societies. Things aren’t entirely rosy for this Singapore-based digital lender, with 2023 bringing an increase in losses. But it has sought out new avenues for growth, and this initiative appears to be paying off. Read on for the full story.
Today we look at:
- Funding Societies’ bumpy 2023
- The big drop in Binance’s market share
- Other newsy highlights such as the launch of Meta’s generative AI video platform and electronics manufacturer Foxconn’s record revenue.
Premium summary
Lend an ear to this digital lender’s woes
Image credit: Timmy Loen
Funding Societies faced a tough 2023. It was “arguably the company’s toughest year since inception,” a spokesperson for the firm tells Tech in Asia.
While the digital lender drove revenue growth that year, its losses widened as well.
- Alternative financing for SMEs: Funding Societies connects SMEs in need of funding with individual and institutional lenders. It operates in Singapore, Malaysia, Vietnam, Thailand, and even Indonesia, where it is known as Modalku. The company has funded some US$4.2 billion via 5.2 million financing deals as of this month.
- Profit push postponed: In 2023, Funding Societies’ losses rose by 16%, hitting US$48.5 million. The firm had hoped to hit operating profitability in the fourth quarter of 2024. However, the company now acknowledges that it will miss that target despite being profitable in some countries.
- Breaking new ground: The digital lender has been exploring new growth drivers, including Islamic financing solutions. In July, Kah Meng Wong, co-founder and CEO of Funding Societies Malaysia, said the company had disbursed more than US$71 million in Islamic funding since the launch of the financing product.
Read more: Funding Societies grows losses, top line in ‘toughest year’ yet
Taking a bite out of Binance
Everything electronics, everywhere, all at once in Hong Kong
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
