Funding Societies raises equity from 500 TukTuks

BANGKOK, Oct 12 -- Small and medium enterprises (SMEs) digital financing platform Funding Societies announced that its Thai crowdfunding platform is now live and on the back of raising equity from investors including 500 TukTuks.

The fintech offers short-term financing for businesses by connecting them to retail and institutional clients seeking attractive debt investment opportunities.

Founded in 2015, Funding Societies Thailand will address the US$300 billion (US$1= RM4.17) SME funding gap, with the firm belief that every deserving SME is entitled to funding.

It was awarded the debt crowdfunding licence by the Thai Securities and Exchange early this year. Its first crowdfunding campaign was a resounding success, raising 2 million baht (100 baht = RM12.46) on behalf of a commercial shopping mall client in just over 72 hours, funded by a pool of retail and high networth investors.

Over the last six years of operations, Funding Societies has disbursed over 58 billion baht through 4.8 million loans to more than 70,000 SMEs across the Southeast Asian region.

Since the launch in Thailand, it has funded local Thai SMEs and startups to the tune of over 100 million baht affordable rates, with no bad debt. It has also partnered the likes of Central Retail, NocNoc, Freshket and Accrevo for financing.

Country head of Funding Societies, Varun Bhandari said the company’s vision has always been to serve the huge market of creditworthy SMEs while growing wealth for investors.

“We’re excited to bring these investment opportunities to Thai investors through quality bonds just months after breaking into the market and honoured for the support of 500 TukTuks along the way. We believe that this will pave the way for Funding Societies to become the digital lender of choice for SMEs,” he said.

500 TukTuks – a micro-fund under 500 Global platform (500 Startups), which focuses on investing in promising early-stage startups in Thailand and Southeast Asia.

Meanwhile, partner of 500 TukTuks Krating Poonpol said fintech is one of the rising industries that has been growing exponentially in the past few years.

“In Southeast Asia, there has been multiple successful fintech startups due to many different factors including its large market size, populations, established financial institutions and businesses that are open to new technologies and innovations.

“500 TukTuks sees an opportunity for Funding Societies to grow exponentially with its capacity to solve challenges faced by SMEs and startups in this region. We strongly believe that Funding Societies could strengthen the Thai economy by offering solutions for entrepreneurs in Thailand.

“We, 500 TukTuks along with other investors, hope to continue our support and push forward this platform as a prime option in the financial sector for this region as it strives to create a meaningful impact for businesses,” Krating said.

-- BERNAMA