Modalku's Parent Company Received Series B Funding Worth of 344 Billion Rupiah
The biggest funding for p2p lending platform in Southeast Asia to date
Randi Eka - 19 April 2018
Funding Societies, a p2p (peer-to-peer) lending developer, known as Modalku's parent company in Indonesia, announces the acquisition of Series B funding worth of US$25 million or 344 billion Rupiah. This round is led by Softbank Ventures Korea. Other investors involved are Sequoia India, Alpha JWC Ventures, Golden Gate Ventures, Qualgro, and LINE Ventures.
The round becomes the biggest one for p2p platform in Southeast Asia. Funds will be used to build up the vision of financial inclusion service in the region. Since it was founded in 2015, the p2p lending platform has made over 60,000 loans by this year.
"We work in a trust-based industry, and we're glad that the customer, SMEs, partners, regulators, and investors put their trust in us. We'll continue in supporting SMEs development for borrower's market focus and improving profit for lenders. It is not only business for us, but a mission to create a positive impact in Southeast Asia," Kelvin Teo, CEO & Co-Founder of Funding Societies, said.
In the same occasion, Teo said that the key development for Funding Societies is focus and consistency in technology and the design of its services. It takes Funding Societies into the leading platform that introduces some sophisticated features, such as E-Signing Contract or Auto Investment Algorithm. The capability has managed the company to make numerous achievements, one of which is Modalku winning the Global SME Excellence Award.
The startup that was founded by Kelvin Teo and Reynold Wijaya has accommodated loans for SMEs in Singapore, Indonesia, and Malaysia. SG$100 million has been facilitated by crowfunding mechanism. Since 2016, the growth rate has reached 300%.
Pieter Kemps, Sequoia India Principal, commented, "In the beginning, we recommend them to focus on the fundamentals: technology, product, risk management, and the maintenance of high-quality loan books. They execute all sectors with vision and integrity. We're optimist that this character will help them build the bigger and sustainable company."
– Original article is in Indonesian, translated by Kristin Siagian