JAKARTA - The Modalku Group, a pioneer of digital MSME funding platforms in Southeast Asia, announced that the company has secured a USD 18 million loan from a syndicate led by three financial institutions, namely Helicap Investments, the recently launched Social Impact Debt Fund, and a service finance group from Japan. In this secured credit facility agreement, Helicap Securities acts as the main board with a single mandate.
Together with funding received from impact investors (firms that invest in businesses that have a positive social, cultural and environmental impact) from Europe such as Triodos Investment Management to increase venture capital loans in Indonesia, the Modalku Group is in the process of to receive institutional funding of USD 120 million with the aim of financing loans for the development of Micro, Small and Medium Enterprises (MSMEs) in Southeast Asia.
“The covid pandemic is an important test for the resilience of the Modalku Group and we are grateful that we have successfully passed it, one way is by using a credit model based on Artificial Intelligence. We are also proud and honored for the trust of Helicap, the Social Impact Debt Fund, and the Japanese financial services group that participated in this funding. We will use the funds to continue to develop the world of digital lending for SMEs. We believe that this is the beginning of a long term relationship and will consistently drive the evolution of the company going forward,” said Reynold Wijaya, Co-Founder and CEO of Modalku.
This USD 18 million syndicated facility is expected to increase the total funding round, along with increasing investor interest from Asia and Europe. (LM)