Funding Societies has secured a new financing facility from Malaysia Debt Ventures (MDV) to expand funding for technology-driven and underserved SMEs in Malaysia.
The multi-year working capital facility will be deployed through Funding Societies’ digital financing platform. Its size was not disclosed.
The deal builds on a relationship that began in 2022, when MDV first participated on the platform to support technology-based SMEs.
Funding Societies uses alternative data and digital credit assessment to extend financing to underserved SMEs.
SMEs account for 96.1% of business establishments in Malaysia and contribute close to 39% of gross domestic product.
Funding Societies has disbursed close to RM7 billion in financing to more than 10,000 businesses in Malaysia.
MDV, a subsidiary of the Minister of Finance (Incorporated), has approved over RM14 billion in financing for more than 1,184 technology projects since 2002.
Chai Kien Poon, Country Head of Funding Societies Malaysia, said,
“Financing a platform is a multiplier. One facility from MDV reaches thousands of businesses instead of one at a time.
For MDV, that is development financing doing what it is meant to do at the scale and speed Malaysia’s SME economy actually needs.”
Sharul Sazman Samaan, Chief Business Officer of MDV, said,
“By supporting an established platform with strong reach and digital financing capabilities, MDV is able to channel developmental capital more efficiently to businesses with smaller, faster-moving financing needs.
Through this facility, MDV aims to extend the reach of its financing support while helping more SMEs access the capital they need to grow and contribute to Malaysia’s economy.”
Featured image: Edited by Fintech News Malaysia, based on image by marinademidiuk via Magnific
