JAKARTA - Modalku Group, Funding Societies, a digital funding platform for Micro, Small and Medium Enterprises (MSMEs) in Southeast Asia officially announced the signing of a credit facility worth USD 50 Million (approximately IDR 737 Billion*) with HSBC Singapore. This is part of a strategy to continue to expand the company's reach in supporting potential MSMEs that have not been served optimally.
Modalku Co-Founder & CEO, Reynold Wijaya, said, "We are honored to receive such a large facility from a global bank like HSBC. This collaboration is an important milestone for us and is a testament to our credit history during the COVID-19 pandemic. HSBC's new capabilities, global capabilities, as well as a scalable approach, further equip us to advance the development of the MSME business which has limited access to funding. We really appreciate the trust that has been given by HSBC and we are very enthusiastic about the collaboration that is currently being carried out.”
Business in Southeast Asia is dominated by MSMEs, with a percentage of 97% with a GDP (Gross Domestic Product) value of 40% in all regions. According to YCP Solidiance's view, Indonesia has the highest internet economic growth and value with the largest GDP contribution generated by MSMEs at 61%. With this collaboration, HSBC can expand the global market through the potential MSME segment that has not been served optimally throughout the region. Then, through this partnership, HSBC will act as a structuring bank, lender, facility and security agent in providing flexible, scalable and semi-regional financing solutions to support the Modalku Group's business expansion in the region.
Prior to the collaboration with HSBC Bank, the Modalku Group recently acquired the regional digital payment platform CardUp (pending regulatory approval), as part of a series of efforts to diversify services beyond lending. In February 2022, Modalku Group also secured Series C+ equity funding of USD 144 Million. Not only that, the Modalku Group also invested in the Bank Index in Indonesia, and carried out its fifth market expansion in Vietnam. (LM)