P2P lender Funding Societies raises $25m in Series B round led by SoftBank Korea

Reynold Wijaya (left) and Kelvin Teo (right), Co-Founders of Funding Societies

Peer-to-peer (P2P) lending platform Funding Societies has raised $25 million in a Series B funding round led by SoftBank Ventures Korea, in what could perhaps be the largest financing round for a P2P lender in Southeast Asia.

Additionally, the platform has also raised credit lines from banks and financial institutions to fund SMEs, its target segment for lending, an announcement said on Wednesday.

The P2P lender, also known as Modalku in Indonesia, saw existing investors Sequoia India, Alpha JWC Ventures (Indonesia) and Golden Gate Ventures participate in the round in addition to Qualgro and LINE Ventures.

Funding Societies, founded by Kelvin Teo and Reynold Wijaya in 2015, is a digital lending platform that connects small and medium-sized enterprises in Singapore, Indonesia and Malaysia with retail and institutional lenders.

In January 2018, the platform crossed the SGD$100-million mark in crowdfunded SME loans, tripled its loan book since the same period in 2016. The platform has also increased its lender base beyond 60,000 in less than three years of operation. It also claims to be the first platform to introduce e-signing of contracts, auto investment algorithm for lenders and launch mobile app for borrowers and lenders. It was also the first P2P lending platform to launch in Malaysia.

Previously, the P2P lender raised $7.5 million in a Series A round in August 2016.

“SoftBank Ventures Korea has been actively investing across Southeast Asia. SME digital lending across Southeast Asia is where we saw a huge growth potential. Among many players, we were most impressed with Funding Societies with what it has achieved in the short period of time and its potential to continue to become no. 1 player,” said Sean Lee, Partner and Managing Director, SoftBank Ventures Korea.

SoftBank Group counts large alternative lenders like SoFi and Kabbage in the US, as well as tech giants like Grab in Southeast Asia among its portfolio firms. The venture arm, Funding Societies said, had invested the lion’s share in the latest Series B round of funding.

There are a string of players who have emerged in the P2P lending space and seeking external investments. Indonesian player UangTeman is said to be looking to raise a Series B financing round by the middle of this year. According to some reports, the amount could be in the region of $15-20 million.

Similarly, another Indonesian P2P firm Investree expects to close a Series B funding round by May.

Further, in Vietnam, P2P lending startup Tima also plans to close a Series B funding round in the next two months. The startup closed a seven-digit US dollar Series A funding from an undisclosed Singapore fund in 2016.

Among other players in the region, Singapore-based MoolahSense said last month it has successfully raised an undisclosed amount, from an oversubscribed seed round led by East Ventures and Pix Vine Capital. The P2P lender’s clientele also comprises SMEs seeking short-term loan financing.

Meanwhile, Singapore-based regional platform for invoice financing and secured lending Capital Match Holdings has also claimed to have closed an oversubscribed Series B financing round led by B Capital Group and existing investor Dymon Asia Venture Capital Fund.

Also Read:

Exclusive: Indonesia’s P2P firm UangTeman likely to raise up to $20m Series B

Indonesia’s P2P startup Investree to raise Series B round, eyes collaboration with banks

Vietnamese P2P lending startup Tima seeks to close Series B round by June

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.