Funding Societies: Survey reveals 72% of MSMEs in SEA boosted revenue with digital financing


Kuala Lumpur, 24 November 2021 - Funding Societies, Southeast Asia’s largest SME digital financing platform, today released its regional impact study. To mark half a decade of the FinTech’s lending, its 2020 survey measures the social and economic impact of its funding to Funding Societies-linked MSMEs (micro, small and medium-sized enterprises) in 2018 and 2019 across Singapore, Indonesia, and Malaysia. 72% of the respondents said their revenues would decrease if not for the FinTech’s business financing. In its six years of operations, Funding Societies has financed over US$1.8 billion through more than 4.8 million loans to nearly 100,000 MSMEs in the region.

Applying the Multi-Regional Input Output global value chain (MRIO-GVC) method of estimating sectoral contribution, which is pioneered by the Asian Development Bank, the study also employs data collected from Funding Societies’ internal systems and user research to measure the borrower’s impact. Sector, revenue, expense, depreciation, and employee numbers are among the data points factored into the programme that creates the output of Funding Societies’ survey. 84% of the surveyed small businesses had used the FinTech’s financing as working capital to pay for overheads, inventory, and business equipment, which were all crucial in their efforts to sustain operations. The SME borrower obtains financing from US$500 up to US$1.5 million, which can be disbursed in as fast as 24 hours, answering in a timely manner to SMEs who face the pertinent challenge of accessing business funds.

Co-founder and Group CEO, Kelvin Teo, said, “My co-founder, Reynold, and I started Funding Societies to make a positive difference in Southeast Asia and we’re heartened to see the huge impact to SMEs over the past 6 years. We are looking to empower SMEs not just in digital financing but also solving their other pain points over time.”

According to a survey conducted by Ernst & Young, 16% of SMEs are open to exploring other financial providers including non-banks, and 68% said they are open to non-traditional lenders as the core appeal is a much faster loan approval process.

Blackrock’s 2020 Global Sustainable Investing Survey revealed that 54% of its global respondents consider sustainable investing to be fundamental to investment processes and outcomes, and 57% of APAC respondents stated that sustainable investing is already - or will become - central to their investment strategies.

SMEs who are interested to apply for SME digital financing, please visit https://fundingsocieties.com.my/ for more information. Access the full report at https://fundingsocieties.com/press-assets

Indonesia

Pendana
[email protected]
+62 878 2325 1976

Peminjam
[email protected]
+62 877 7873 6144

Unifam Tower, Jl. Panjang Raya
Blok A3 No.1, Kedoya Utara,
Kebon Jeruk, Jakarta Barat,
DKI Jakarta, 11520, Indonesia

Singapore

[email protected]
+65 6221 0958

112 Robinson Road
Level 8
Singapore 068902

Malaysia

[email protected]
+603 2202 1013

Unit 15.01 & Unit 15.02,
Level 15, Mercu 3,
KL Eco City, Jalan Bangsar,
59200 Kuala Lumpur

Thailand

[email protected]
+66 93 139 9721

No. 188, Spring Tower,
11th Floor, Phayathai Road,
Thung Phaya Thai Sub-district,
Ratchathewi District,
Bangkok, 10400

Vietnam

[email protected]
(+84) 913 302 910

2/F Sonatus Building,
15 Le Thanh Ton,
Ben Nghe Ward,
District 1,
Ho Chi Minh City, Vietnam

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Modalku Ventures Sdn Bhd 201601019329 (1190266X)
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Funding Societies is a SME Digital Financing Platform registered with Securities Commission Malaysia. It does not fall under the jurisdiction of Bank Negara Malaysia. Therefore, financing products of Funding Societies should not be constructed as business loan, SME loan, micro loan, term loan or any other loans offered by banks in Malaysia and it is to be deemed as an investment note as defined in the Guidelines on Recognised Markets.

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