Funding Societies | Modalku, the largest small and medium-sized enterprise (SME) digital finance platform in Southeast Asia (SEA), has announced a strategic equity investment from Gobi Partners, an Asia-focused venture capital firm.
This investment underscores strong investor confidence in Funding Societies’ business model, resilience, and commitment to bridging the region’s SME credit gap, even amid broader fintech market challenges, the duo said in a statement on Thursday.
The investment comes at a time when lenders and investors have become increasingly cautious toward fintech firms following industry challenges.
Gobi Partners’ backing reinforces Funding Societies’ financial stability and continued growth over the past decade in SME financing and its foray into payments since 2022 – distinguishing it as a trusted, well-managed platform for underserved businesses across the region.
“At a time when market conditions have led to increased caution toward fintech firms, this partnership is a testament to our strong fundamentals and commitment to financial inclusion,
“SMEs remain the backbone of Southeast Asia’s economy, and we will continue to be dedicated to providing them with accessible and responsible financing solutions to help them grow and thrive,” said Kelvin Teo, Co-founder and Group Chief Executive Officer of Funding Societies.
As Southeast Asia’s SME sector continues to face a significant credit gap – estimated at over $2.5 trillion – Funding Societies said the firm remains at the forefront of delivering innovative financing solutions tailored to small and medium-sized enterprises.
This investment from Gobi Partners will help further enhance Funding Societies’ technology-driven approach, leveraging artificial intelligence (AI) and automation to streamline lending processes and improve risk management.
“Funding Societies has consistently demonstrated strong execution and resilience in SME financing, making a meaningful impact on businesses across the region,
“Our investment underscores our confidence in their ability to navigate economic cycles, drive fintech innovation, and continue closing the SME credit gap,” said Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners.
Despite economic uncertainties, Funding Societies said it remains committed to its mission of empowering SMEs with tailored digital financial products that address their evolving needs.
The company has already disbursed over $4 billion in business financing to approximately 100,000 SMEs, and processed an annualized payments gross transactions value (GTV) of over $1.4 billion.
As digital financial services remain a key driver of financial inclusion in the region, the partnership with Gobi Partners will enable Funding Societies to expand its reach and continue supporting SMEs that drive local economies.
Funding Societies also said the firm is well-positioned to maintain its trajectory of growth while upholding responsible lending practices that ensure long-term sustainability with the strong backing from investors and lenders from the successful milestones achieved in 2024.
This includes equity investments from Cool Japan Fund and Maybank, and a third annual credit facility from HSBC’s ASEAN Growth Fund which is part of an accumulative commitment of over $100 million credit facility with the bank.
Since embarking on its strategic milestone to expand into payments, Funding Societies processes an annualized $1.4 billion in gross transactions value, following the acquisition of regional digital payments platform CardUp in 2022.
The firm is backed by SoftBank Vision Fund 2, Cool Japan Fund, Maybank, Khazanah Nasional Berhad, CGC Digital (the digital arm of the Credit Guarantee Corporation Malaysia
Berhad), SBVA (previously SoftBank Ventures Asia), Peak XV Partners (previously Sequoia Capital India), Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EBDI, SGInnovative, Qualgro, and Golden Gate Ventures among others.
Gobi Partners is an Asia-focused venture capital firm with $2 billion in assets under management.
Headquartered in Kuala Lumpur and Hong Kong, the firm supports entrepreneurs from the early to growth stages and focuses on emerging and underserved markets.
Founded in 2002, the firm has raised 25 funds and invested in over 400 startups with 62 operating in the Circular Economy.
Gobi has grown to 15 locations across key markets in Bangkok, Beijing, Dhaka, Guangzhou, Ho Chi Minh City, Hong Kong, Jakarta, Karachi, Kuala Lumpur, Lahore, Manila, Shanghai, Shenzhen, Singapore and Tianjin.