Lending roars back for Funding Societies

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• A lending comeback for Funding Societies
• A glimpse into the world of venture building
• Inside India’s AI edtech revival

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Hello reader,

I recently covered the lending scene in the Philippines. The sector has been booming, with many local players like Cashalo and Salmon doubling down with funding rounds in the high seven-figures.

But the story isn’t the same for the rest of Southeast Asia – at least for the last year.

SME digital financing platform Funding Societies says its lending business remained tough in 2024. At the time, the Singapore startup was still reeling from the US rate hikes, which hit a 22-year high in late 2023.

Of course, safety nets were in place. While waiting for the lending sector to recover, Funding Societies turned to payments starting in 2023. The business arm eventually grew, contributing about a third of the company’s total revenue in 2024.

Now, the firm says it’s starting to see a recovery in lending, especially as US rates continue to fall. Coupled with its continued investment in the payments space, its goal to reach net profit by 2027 may look much more achievable as 2025 winds down.

Whatever changes there may be in Funding Societies’ figures, we’ll be sure to update you on them.

Miguel Cordon, journalist

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Top Stories

1️⃣ Falling rates fuel Funding Societies’ lending comeback in 2025

Funding for loans was harder to come by in the past few years, with US rates shooting up quickly in 2023. But Funding Societies’ investments in payments, which include its acquisition of CardUp, helped it weather the lending cooldown it faced from 2023 through 2024.

Now, it’s confident in pushing for more growth in its core lending business, albeit cautiously.

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