VNG Group pumps $22.5 million into fintech platform

Digital financing platform Funding Societies has confirmed its recent fundraising spherical value $144 million in an oversubscribed Sequence C+ led by SoftBank Imaginative and prescient Fund 2 and several other different enterprise capital companies.

VNG Group pumps $22.5 million into fintech platform
Co-founder & group CEO Kelvin Teo with fellow co-founder Reynold Wijaya

VNG Company, Vietnam’s largest web and expertise enterprise, made a $22.5 million funding in Funding Societies. The corporate additionally acquired $150 million in debt traces from institutional lenders throughout Europe, the US, and Asia. This comes on the again of its $45 million Sequence C funding raised between 2020 and 2021.

The fintech agency is licensed and registered to function in 4 of the ASEAN nations and territories and can quickly make a debut in Vietnam. To this point, it has lent over $2.1 billion to micro-, small-, and medium-sized enterprises in Southeast Asia, with mortgage transactions exceeding $5 million.

Funding Societies will utilise the recent funding to strengthen its place as a market chief in digital financing for such enterprises within the area. The corporate’s inventory possibility plan, which provides share buybacks to present and previous staff, has acquired an extra $16 million from the newest spherical of fundraising.

Co-founder and group CEO Kelvin Teo stated, “We’re honoured by the religion of our new and current shareholders. We began Funding Societies to empower small- and medium-sized enterprises (SMEs) by offering entry to financing, particularly unsecured financing, which is their greatest downside. A standard false impression is that we compete with banks. The fact is we’re a substitute for financial savings, mates and households, and private bank cards. There’s a big unsecured financing hole as a result of it takes endurance and focus, otherwise you danger dropping some huge cash. Having confirmed our AI-led credit score capabilities in an unprecedented monetary disaster, we glance to serve SMEs with neo banking and a deeper regional presence in Southeast Asia.”

Greg Moon, managing associate at SoftBank Funding Advisers stated, “SMEs throughout Southeast Asia have traditionally struggled to entry institutional finance and have as an alternative been compelled to primarily depend on private funding to assist progress. Funding Societies is establishing a bridge for these corporations to entry extra sustainable and cheaper financing by constructing distinctive information units on their efficiency and utilizing AI-led expertise, which may assess creditworthiness extra successfully than conventional fashions.”

By Tri Lam

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