Funding Societies, a digital finance platform for Southeast Asian SMEs, announced that it had raised US $ 18 million in debt financing led by a trio of financial institutions including Helicap Investments, the new Fund. Debt to Social Impact and an anonymous Japanese financial services group.
Helicap is a Singapore-based alternative lending company that offers private debt investments to a large network of accredited investors, including family offices, high net worth individuals, impact funds and institutional investors.
In line with its support for sustainable lending, finance companies joined the round through its investment arm, Helicap Investments, after the deal was arranged by its securities arm, Helicap Securities.
Helicap Securities acted as sole principal of the secured credit facility.
This US $ 18 million syndicated facility is expected to grow further with interest from investors across Asia and Europe.
In addition to funding received from European impact investors such as Triodos Investment Management for Indonesian corporate loans, the finance companies said they were on track to raise US $ 120 million in institutional debt to fund the needs of growth of micro, small and medium enterprises (MSMEs) in South East Asia.
This funding round also expands the platform’s institutional lender base, which it has secured after successfully passing the financial and risk due diligence conducted by the lenders.
Finance companies provide MSMEs with commercial finance, which is largely funded by institutional lenders and retail investors.
The lender allows access to finance using alternative data points including, but not limited to, MSME cash flows to secure these loans.
“The pandemic has been an important test of resilience, and we are happy to have weathered it successfully, with a proven AI-powered credit model.
We are honored by the trust of Helicap, the Social Impact Debt Fund and the Japanese financial services group, which allows us to continue the growth of digital financing for SMEs ”,
said Kelvin Teo, co-founder and CEO of the group, Funding Societies and Modalku.
“We are delighted to have assisted Funding Societies in their goal of providing access to capital for underserved MSMEs.
This transaction demonstrates the continued institutional and individual appetite for private debt investment, and Helicap is well positioned to provide access to quality opportunities through our relationships with leading issuers such as finance companies.
said David Z. Wang, co-founder and CEO of Helicap, the parent company of Helicap Investments and Helicap Securities.
Featured Image: (Left to Right) Kelvin Teo, Group Co-Founder and CEO, Funding Societies and Modalku; David Z. Wang, co-founder and CEO, Helicap