KUALA LUMPUR – Funding Societies Malaysia has achieved RM1 billion disbursement in business financing across more than 17,000 financing deals, directly supporting creditworthy underserved micro, small and medium enterprises (MSME) in the nation.
Regionally, Funding Societies, the largest SME digital financing platform in Southeast Asia, has reached RM8.5 billion total financing disbursement as at January this year.
“Learning from the challenges and uncertainties we faced in the past two years, the platform is in a better position to react and to adjust our business model and risk underwriting.
“This resulted in 100% growth of financing deals in 2021 compared with the previous year, while maintaining a default rate of around 3%,” it said in a statement on January 20.
Funding Societies co-founder and chief executive officer Wong Kah Meng said the RM1 billion disbursement milestone is a reflection of the thousands of underserved creditworthy SMEs it had supported over the years, not just in Malaysia, but also across Southeast Asia.
“The pandemic has paved a new era of digital inclusion, this simultaneously allows us to scale further in reaching out to more of these creditworthy MSMEs, in line with their increased awareness of digital financing platforms,” he said.
Moving forward, Wong said Funding Societies is expected to disburse more than RM500 million in financing this year, backed by strong support from all its stakeholders.
Funding Societies has over the years championed SME digital financing with over 60% market share via tailored financing solutions befitting the varied business needs of SMEs.
The platform has onboarded more than 50,000 investors so far.
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