Singapore-based digital finance platform Funding Societies said Thursday the firm is streamlining business operations in Indonesia amid global challenges.

Funding Societies said in a statement that this year has seen continued adverse macroeconomic conditions that have led to challenges across various industries – impacting its customers and, in turn, its business in the five markets it operates in.

Due to these macroeconomic conditions and part of the firm’s ongoing efforts to continue serving small and medium-sized enterprises (SMEs) in the region, the firm has made the decision to streamline business operations in Indonesia (operating locally as Modalku).

According to the statement, this exercise has impacted 38 out of 214 people in Indonesia.

Funding Societies said the decisions on the affected personnel were made after a rigorous review and careful consideration of current and future business priorities.

It also said this is part of the company’s mission to help SMEs beyond lending, extending into payments, while transiting to a leaner organizational structure.

It is noted that impacted employees will receive compensation in accordance with local regulations.

Employees and their dependents will also be provided with an extension of full healthcare insurance and benefits until the end of the year and have access to a full suite of professional and mental health support, and outplacement services, including CV writing, interview coaching and reference letters.

Funding Societies said that since 2019, the firm has continuously focused on growth and profitability as the company’s core priorities.

In Malaysia, the firm has successfully launched a comprehensive suite of Shariah-compliant financing solutions this year, which was followed by the introduction of Guaranteed Islamic Investment Note in June.

Furthermore, in Singapore, the firm has also introduced new features to its business expense solution, Elevate, to incorporate accounts, cards and more this year.

To date, the firm has achieved over $3.2 billion with more than 5 million transactions in business financing to SMEs across the five markets it operates.

The firm has served close to 100,000 businesses, while achieving an overall platform cohort default rate under 2 percent.

Funding Societies | Modalku is the largest unified SME digital finance platform in Southeast Asia.

It is licensed in Singapore, Indonesia, Thailand, registered in Malaysia, and operates in Vietnam.

The FinTech company provides $1 billion annually of business financing to SMEs.

Its recent strategic milestones include its acquisition of regional digital payments platform CardUp (subject to regulatory approval) and co-investment into Bank Index in Indonesia.

Funding Societies partners CGC Digital to support MSMEs via digital supply chain financing guarantee