(L-R): Kelvin Teo, Group CEO & Co-founder, Funding Societies; Thomas G. Tsao, Co-founder &
Chairperson, Gobi Partners
Investment reinforces confidence in Funding Societies’ decade-long mission amid market
volatility and underscores commitment to financial inclusion for underserved businesses
Kuala Lumpur, 20 March 2025 – Funding Societies | Modalku (Funding Societies), the largest
SME digital finance platform in Southeast Asia, has announced a strategic equity investment
from Gobi Partners, an Asia-focused venture capital firm. This investment underscores strong
investor confidence in Funding Societies’ business model, resilience, and commitment to
bridging the region’s SME credit gap, even amid broader fintech market challenges
The investment comes at a time when lenders and investors have become increasingly cautious
toward fintech firms following industry challenges. Gobi Partners’ backing reinforces Funding
Societies’ financial stability and continued growth over the past decade in SME financing and its
foray into payments since 2022 – distinguishing it as a trusted, well-managed platform for
underserved businesses across the region
Kelvin Teo, Co-founder and Group CEO of Funding Societies, said, “We are honoured to
receive this strategic investment from Gobi Partners. At a time when market conditions have led
to increased caution toward fintech firms, this partnership is a testament to our strong
fundamentals and commitment to financial inclusion. SMEs remain the backbone of Southeast
Asia’s economy, and we will continue to be dedicated to providing them with accessible and
responsible financing solutions to help them grow and thrive
Driving SME Lending and Fintech Innovation
As Southeast Asia’s SME sector continues to face a significant credit gap – estimated at over
US$2.5 trillion1 (RM11.11 trillion2) – Funding Societies remains at the forefront of delivering
innovative financing solutions tailored to small and medium-sized enterprises. This investment
from Gobi Partners will help further enhance Funding Societies’ technology-driven approach,
leveraging AI and automation to streamline lending processes and improve risk management
Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners, commented, “Funding
Societies has consistently demonstrated strong execution and resilience in SME financing,
making a meaningful impact on businesses across the region. Our investment underscores our
confidence in their ability to navigate economic cycles, drive fintech innovation, and continue
closing the SME credit gap. We are excited to partner with them on this journey to strengthen
financial inclusion across Southeast Asia.”
Strengthening Financial Inclusion and Economic Growth
Despite economic uncertainties, Funding Societies remains committed to its mission of
empowering SMEs with tailored digital financial products that address their evolving needs. The
company has already disbursed over US$4 billion (RM17.78 billion) in business financing to
approximately 100,000 SMEs, and processed an annualised payments gross transactions value
(GTV) of over US$1.4 billion (RM6.2 billion). As digital financial services remain a key driver of
financial inclusion in the region, the partnership with Gobi Partners will enable Funding Societies
to expand its reach and continue supporting SMEs that drive local economies
Funding Societies is well-positioned to maintain its trajectory of growth while upholding
responsible lending practices that ensure long-term sustainability with the strong backing from
investors and lenders from the successful milestones achieved in 2024. This includes equity
investments from Cool Japan Fund and Maybank, and a third annual credit facility from HSBC’s
ASEAN Growth Fund which is part of an accumulative commitment of over US$100 million
(RM444.6 million) credit facility with the bank.
