Choco Up, an Asia-based growth financing platform, has entered into a strategic partnership with Wonder Capital Group Limited, a Hong Kong-based independent investment management firm, to begin a series of private credit funds projected to raise $50 million, to fund Asia Pacific (APAC) small and medium-sized enterprises (SMEs).
The duo said in a statement on Tuesday that this partnership includes the successful completion of its first close of a $10 million private credit funding round funded by CMAG Private Credit Fund led by Wonder Capital.
The collaboration marks a significant step forward in Choco Up’s mission to empower a million asset-light businesses in the APAC region to achieve sustainable growth.
It is noted that the SME sector, which accounts for 98 percent of all businesses in Asia but contributes only 38 percent to the region’s gross domestic product (GDP), faces a staggering $2 trillion funding gap in meeting their growth and expansion needs.
Choco Up said the firm is working to bridge this gap with its innovative financing solutions, by providing flexible, non-dilutive revenue-based financing and tailored growth strategies.
The fund led by Wonder Capital will serve as a catalyst for empowering businesses in industries like e-commerce, software as a service (SaaS), and technology, enabling them to scale and unlock exponential growth.
Choco Up’s partnership with Wonder Capital also signifies a strong alignment of shared values and a joint vision to empower businesses and drive sustainable growth across the APAC region.
It aims to address the untapped potential of asset-light businesses, offering tailored solutions that combine Choco Up’s innovative financing platform with Wonder Capital’s financial expertise.
The strategic partnership enhances Choco Up’s access to institutional investors and strategic partners, creating greater visibility and collaboration opportunities.
Additionally, backing from a reputable institution like Wonder Capital strengthens Choco Up’s market positioning and instills confidence among stakeholders, partners, and clients. Together, the partnership sets the stage for driving sustainable growth across the region.
To date, Choco Up has financed over $1 billion in gross merchandise value across APAC.
Its swift, flexible, and equity-free financing solutions have been instrumental in helping businesses increase revenues, launch new products, expand their user bases, grow their teams, and achieve successful acquisitions.
With the funding and partnership in place, Choco Up said it is poised to extend its support to even more businesses, helping them unlock growth opportunities and scale sustainably.
Wonder Capital, on the other hand, brings to the table a wealth of expertise in investment management, and has a strong track record of providing strategic funding and guidance to high-growth businesses globally.
Their shared commitment to supporting businesses in achieving their full potential makes this partnership with Choco Up a natural fit, said the statement.
“Partnering with Choco Up allows us to tap into the blue ocean of asset-light businesses across APAC,” said Gigi Chan, Founder and Chief Executive Officer of Wonder Capital.
“The launch of our private credit fund series has already attracted strong interest from institutional investors, and we expect to continue to raise $50 million,
“This partnership aligns perfectly with our vision to foster ecosystem growth and empower businesses, marking the start of a meaningful, long-term collaboration,” she added.
Meanwhile, Percy Hung, Founder and Chief Executive Officer of Choco Up, added this partnership goes beyond funding.
“By leveraging Wonder Capital’s network and resources, we are better equipped to help businesses overcome growth barriers and realize their expansion plans,
“Together, we aim to not only support the region’s SMEs, but also deliver a compelling investment proposition for institutional players seeking high-growth opportunities in APAC,” he said.
Based in Australia, Malaysia, Singapore and Hong Kong, Choco Up provides working capital solutions to businesses.
Wonder Capital specializes in providing advice and solutions to professional investors including institutions, family offices and high-net-worth individuals in the globe.