Funding Societies Reaches Milestone of 1 Billion SGD in SME Lending

Funding Societies, an SME digital financing platform in Southeast Asia with presence in Singapore, Indonesia and Malaysia, Funding Societies has facilitated more than 1 million business loans to SMEs through a base of more than 150,000 individual and institutional investors in the last 4 years since inception in 2015. Funding Societies expanded its loan volume by 3 times in the last 12 month stating a default rate of 1.5%. Funding Society claims this to be the highest amount given out by any SME digital financing platform in Southeast Asia.

Funding societies founders Kelvin Teo and Reynold Wijaya
Funding Societies Founders Kelvin Teo and Reynold Wijaya

The growth in SME loans with Funding Societies is reflective of the increasing openness amongst businesses towards new generation funding options. As per the EY, UOB and Dun and Bradstreet report ‘Asean SMEs – Are you transforming for the future’, 67.8% of the SMEs are now open to non-traditional lenders including lending platforms. Alternative financing providers like Funding Societies are addressing this segment by providing technology backed funding solutions for the growth of local businesses.

Read an interview P2P-Banking conducted with the founders 4 years ago.

Kelvin Teo, Co-Founder and Group CEO of Funding Societies, commented, ‘What SMEs need is not subprime banking, but a different banking. We’re honored to have partnered with many SMEs in their growth journey. It hasn’t been easy, as SME financing is a patient business. We hope to work even closer with SMEs in 2020, in line with our belief of ‘stronger SMEs, stronger societies’ since 2015.’

Funding Societies specialises in all forms of short-term unsecured financing up to 2 million SGD, with funds disbursed as early as the next day. Funding Societies’ SME clients ranges from micro businesses and SMEs to small listed companies looking for working capital financing. For platform investors, the minimum amount is low starting from 20 SGD per investment. Other than individuals Funding Societies also has regulated financial institutions and funds who invest into loans on the platform.

Funding Societies is backed by Sequoia India and Softbank Ventures Asia Corp.

Profits and Losses of P2P Lending Marketplaces 2017 and 2018

I added a new information page to P2P-Banking compiling data on which p2p lending marketplaces made a profit or a loss in the last business years. You can read more on why this data is useful to investors on the platforms here.

Snapshot of the table at the start of the data collection:

p2p lending companies profitable
Table: Profits/losses of p2p lending companies (in million currency units) Source: own research.

The table will be updated and added to on this infomation page in future. P.S.: Thx to the crowd for emailing me additional data. Only a few hours after first publication I was already able to add more companies and data so the table on the information page is already more comprehensive than the outdate first version of the publication shown above.

new menue point

International P2P Lending Volumes October 2019

The table lists the loan originations of p2p lending marketplaces for last month. Mintos leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces in the table adds up to 703 million Euro. I track the development of p2p lending volumes for many markets. Since I already have most of the data on file, I can publish statistics on the monthly loan originations for selected p2p lending platforms. This month I added Kameo and TFGcrowd. Fundingsecure was removed due to insolvency.

Milestones in cumulative volume lent crossed this month:

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available. UK investors can compare IFISA rates.

p2p lending statistic october 2019
Table: P2P Lending Volumes in October 2019. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.

Links to the platforms listed in the table: Ablrate, Archover, Assetz Capital, Bitbond, Bondora, Bondster, Colectual, Credit.fr, Crowdproperty, Debitum Network, Dofinance, Estateguru, Fellow Finance, Finansowo, Finbee, Folk2Folk, Geldvoorelkaar, Growly, Grupeer, Investly, Iuvo Group, Kameo, Klear, Landbay, Landlordinvest, Lending Works, Linked Finance, Look&Fin, Mintos, MyTrippleA, Neofinance ,October, Peerberry, Proplend, Ratesetter, Rebuilding Society, Savy, Smartika, Soisy, Sourced, Swaper, TFGcrowd, ThinCars, Twino, Viainvest, Viventor, Zopa.

Notice to p2p lending services not listed: Continue reading