Funding Societies Malaysia, a leading fintech firm, has secured strategic investments from Khazanah Nasional Bhd and CGC Digital Sdn Bhd to extend its services beyond major cities, with a goal to serve over 25,000 micro, small, and medium enterprises (MSMEs) in Malaysia by the end of 2025. This capital infusion aims to address a substantial RM90 billion (US$19 billion) funding gap for MSMEs and enhance financial inclusion through innovative digital guarantee products, signaling a significant step forward in the company’s mission to empower underserved businesses.
3 January 2024 – Funding Societies Malaysia has achieved a significant milestone by securing strategic investments from Khazanah Nasional Bhd and CGC Digital Sdn Bhd, marking a substantial leap forward for the regional fintech company. This infusion of capital aims to propel Funding Societies beyond major cities, with an ambitious target of serving over 25,000 micro, small, and medium enterprises (MSMEs) in Malaysia by the close of 2025.
Funding Societies, a key player in the financial technology (FinTech) sector, specializes in providing financing to the often underserved segment of MSMEs, particularly micro and small businesses that face challenges accessing traditional financial institutions. The company’s strategic expansion is poised to address a substantial RM90 billion (US$19 billion) funding gap for Malaysian MSMEs by extending its coverage to areas beyond Kuala Lumpur, Selangor, Penang, and Johor.
By the conclusion of 2025, Funding Societies envisions empowering over 25,000 MSMEs across Malaysia, fostering improved access to financing, growth opportunities, and scalability. This initiative aligns with broader objectives of stimulating job creation and income development within the businesses served. Additionally, Funding Societies aims to extend the reach of its Islamic financing solutions, with over RM100 million in Shariah-compliant financing disbursed since its launch in May 2023.
With a proven track record of facilitating over RM16 billion (US$3.5 billion) in financing through five million transactions across Southeast Asia, Funding Societies has positively impacted over 100,000 businesses in key markets including Malaysia, Singapore, Indonesia, Thailand, and Vietnam.
Kelvin Teo, co-founder and group CEO of Funding Societies, underscores the significance of investments from Khazanah and CGC Digital, emphasizing their commitment to extending credit to underserved MSMEs. He highlights the challenges faced by MSMEs in obtaining credit, despite their substantial contribution to Malaysia’s GDP.
Khazanah Nasional’s investment aligns with its Dana Impak mandate, supporting access to financing for MSMEs to drive socio-economic growth in underserved communities. The collaboration with CGC Digital aims to enhance financial inclusion through innovative digital guarantee products, addressing challenges faced by small businesses.
Yushida Husin, CEO of CGC Digital, sees the investment as a strategic win for Malaysian MSMEs. The partnership aims to develop innovative digital guarantee products for thin-file MSMEs, increasing their chances of obtaining much-needed financing when offered alongside Funding Societies’ financing solutions.
Funding Societies, also known as Modalku, stands as the largest unified SME digital finance platform in Southeast Asia, holding registrations and licenses in multiple countries, including Malaysia, Singapore, Indonesia, and Thailand. With backing from prominent investors like SoftBank Vision Fund 2, SoftBank Ventures Asia, and Sequoia Capital India, the platform is poised for continued growth and impact in the region. – ref: NST
