Kelvin Teo and Reynold Wijaya founded Funding Societies in 2015 while studying for their MBA at Harvard.[2] Funding Societies operates an online platform that enables Small and Medium Business to seek funding for their growth from a pool of investors, through crowdfunding. The standard loan period ranges from 3 months to 2 years and borrowers can loan up to SGD$500,000. In the first month of launching, they have received a total of SGD$3 million loan applications which about SGD$250,000 was disbursed.[3]

Investors can search and browse the loan listings on Funding Societies website and select loans that they want to invest into based on the profile of the borrower, amount of loan, loan grade and return on investment they can expect to earn. The loan is graded based on Funding Societies’ proprietary credit assessment model. Investors make money from interest and Funding Societies makes money by charging borrowers an origination fee and investors a service fee.

In January 2016, Funding Societies launched Modalku, which means “My Capital” in Bahasa to reach out to SMEs in the Indonesian Market. [4] The company claims that SGD$7.8 million in loans had been originated through its Singapore platform up to 30 June 2016. [5]

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