HSBC invests $100m in MSME finance platform Funding Societies

Two annual credit facilities were also extended to Funding Societies.

HSBC has invested $100m in startup Funding Societies | Modalku (Funding Societies) to provide credit access to underserved micro, small, and medium enterprises (MSME) segments in Asia Pacific (APAC). 

The transaction, which is under the bank's ASEAN Growth Fund, also includes two annual credit facilities extended to Funding Societies. 

Whilst APAC has grown its middle and increased its access to formal banking services, it still has a $2.5t credit access gap, making up over half of the global shortfall in small business financing.

HSBC will act as the structuring bank, lender, account bank, FX counterparty, facility and security agent.