FundPark, a Hong Kong-based fintech company, has closed an asset-backed securitization (ABS) facility of up to $250 million, of which HSBC will provide up to $200 million as the senior lender.
In total, this latest financing round enables FundPark to deploy up to $750 million in funding to support eCommerce entrepreneurs, the duo said in a statement on Tuesday.
According to the statement, this is the first collaboration facilitated by the strategic alliance of The Hong Kong Science and Technology Parks Corporation (HKSTP) and HSBC, the first of its kind public-private cooperation between the city’s leading innovation & technology (I&T) ecosystem and a leading global bank.
The statement also said HSBC is committed to supporting entrepreneurs and high-growth companies in the technology sector to capture regional and international growth opportunities.
It said this transaction will enable FundPark to support more small-to-medium sized (SME) eCommerce entrepreneurs in the Greater Bay Area, as well as more broadly in Greater China.
It is also noted that the facility is provided from the $3 billion HSBC New Economy Fund, which supports high-growth innovative companies and startups with tailored debt financing solutions across Hong Kong and mainland China, in support of their regional or international expansion.
“Our purpose is to fund the self-belief of entrepreneurs by making working capital work for them, and in doing so positively contribute to communities and the economy,” said Anson Suen, Chief Executive Officer and Co-founder of FundPark.
“Throughout this process, HSBC has shown that it shares a similar goal to make finance efficient and accessible to support small businesses, the digital entrepreneurs behind them and contribute to the growth of the new economy particularly in the Greater Bay Area,
“We look forward to our collaboration in connecting finance and technology to deliver real impact,” he added.
FundPark harnesses artificial intelligence (AI) technology and its proprietary risk management platform to help eCommerce entrepreneurs secure working capital loans, utilizing data from their online sales platforms and partners.
In doing so, it is extending financial inclusion to address the estimated $30 trillion global liquidity gap.
Since 2016, the firm has provided over $2.5 billion in funding to over 17,000 shops trading with over 19 markets including Greater China, Southeast Asia and the United States, with two-thirds of the total deployment occurring within the past two years alone.
“China’s cross-border eCommerce gross merchandise value is expected to triple from $155 billion in 2019 to $500 billion in 2025,
“The tailored asset-backed securitization finance solution from the HSBC New Economy Fund will support FundPark, a company from the HKSTP ecosystem, to step up its commitment to help eCommerce entrepreneurs across Greater China capture opportunities in the fast-growing market,” said Frank Fang, General Manager, Head of Commercial Banking, Hong Kong and Macau of HSBC.
Leveraging its extensive global network, he said the firm is well-placed to collaborate with purpose-driven fintech companies to positively contribute to the economy.
It is noted that Hong Kong is home to around 1,000 fintech companies and over 4,000 start-ups.
To support this dynamic market landscape, HSBC and HKSTP have entered into a three-year strategic partnership agreement to drive innovation and create a more effective bank-fintech collaboration ecosystem.
“The collaboration between HSBC and HKSTP not only benefits FundPark but also makes a significant contribution to the overall development of China’s digital economy,
“Our teams are thrilled to see that FundPark’s journey to scale up. We remain committed to providing continuous support in nurturing tech startups and look forward to having the next FundPark,” said Albert Wong, Chief Executive Officer of HKSTP.
Under the three-year partnership agreement of HKSTP and HSBC, the bank will provide tailored financing solutions and investment opportunities to bolster companies within the HKSTP ecosystem at different stages of their growth.
The collaboration will also focus on facilitating an international fintech corridor, supporting HKSTP’s fintech ecosystem growth, enhancing data collaboration, and enabling solution scouting and co-creation, said the statement.
Founded in 2016, FundPark is a fintech scale-up supporting fast growth digital entrepreneurs by delivering insights and capital to bridge their needs to growth.
This is enabled by its proprietary credit model and AI technology, enabling it to harness real time data from its global ecosystem of partners including Amazon, eBay, Tmall and Walmart.
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