Funding Societies | Modalku, the largest unified small and medium enterprises (SME) digital finance platform in Southeast Asia, announced on Tuesday that it has successfully raised debt of $27 million.

Funding Societies said in a statement that the funding was led by Asia-focused private credit financier AlteriQ Global, with multi-family office Aument Capital Partners (ACP), and sustainability-focused fund Orange Bloom who also invested in this debt funding round.

It said the funds will be channeled via Funding Societies’ broad range of tailored financing solutions to support the underserved small and medium-sized enterprise (SME) segments in the five markets it operates in.

According to the statement, SMEs form the backbone of the economies in Southeast Asia.

In the ASEAN region, there are more than 70 million businesses that are categorized as micro, small and medium enterprises (MSMEs), accounting 99 percent of total establishments and contributing to 44.8 percent of the region’s Gross Domestic Product (GDP).

Despite reports of increased access to credit for consumers, it said 39 million MSMEs in the region still face challenges to financing.

Cited the United Nations Capital Development Fund, it said this gap amounts up to $300 billion.

It said Funding Societies consistently continues to expand the range of access to its services through this funding, while supporting SMEs to maintain their business cash flow.

“We are delighted to receive this debt funding from such a diverse group of institutional investors, all of whom believe in our mission and growth story of serving Southeast Asia’s SMEs,

“Amidst uncertain macroeconomic conditions, we continue to deepen our financing propositions across our five markets for more underserved SMEs, alongside existing and new partners,” Co-Founder and Group Chief Executive Officer of Funding Societies | Modalku, Kelvin Teo said.

Meanwhile, AlteriQ Global Managing Partner Zhi Yong Heng said that the firm found great synergy and potential with what Funding Societies has accomplished through the years with its diverse digital financing solutions, the quality of their team and the many SMEs they have served.

“As one of the leading players in the digital financing space, this ties in very well with how AlteriQ Global strives to foster and provide a fully-integrated financing ecosystem. We look forward to supporting and collaborating with Funding Societies as they continue to grow in the region,” he said.

AlteriQ is an Asia-focused private credit strategy with a strong edge in Southeast Asia.

The firm is dedicated to building a fully integrated financing ecosystem as a capital partner with regional presence, proprietary network of relationships, and risk management expertise.

It offers tailored financing solutions to portfolio companies and partners and unlocks value through its resources and ecosystem.

Aument Capital Partners is a multi-family office geared towards entrepreneurs, offering comprehensive family office services from investment management, reporting, consolidation, cashflow planning and access to its venture partner program.

Orange Bloom started out in 2012 as a ship-recycling consultancy and provider of turn-key solutions to ship-owners for their ship decommissioning requirements within the South-east Asia region.

Having realized in hindsight that our ship-recycling business had all the hallmarks of the ‘Circular Economy’, Orange Bloom decided to broaden its scope and transitioned into a champion of sustainable causes / ideas.

To this end, Orange Bloom has recently set-up The Orange Bloom Sustainability Fund that provides financial support to individuals/SMEs that are working on projects that counter climate change, advance environmental sustainability and involve the communities in Asia.

The firm also assists SMEs to transition to a low-carbon economy.

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