Singapore's Funding Societies raises $144 mln in SoftBank-led equity round

The seven-year-old company, whose main market is Indonesia, focuses on micro, small and medium enterprises, offering loans from $500 to as much as $1.5 million. The COVID-19 pandemic has spurred a boom in Southeast Asias internet economy, with many digital lenders scaling up their businesses as they capitalise on the growing funding needs of micro, small and medium enterprises in the region. In the regions 650-million population, millions of small entrepreneurs are "under banked" or "unbanked" due to insufficient credit history and cumbersome requirements. Funding Societies, which calls itself the biggest player in a highly-fragmented regional market, recently expanded into Thailand and Vietnam, and is rolling out new business lines. The company, recognised as Modalku in Indonesia, also works with banks and other financial firms to disburse loans on its platforms, and had default rates of 1-2%, Teo said.