A Year of Milestones, Partnerships, and Recognition
As we bid farewell to 2023, we reflect on our journey as a leading player in Malaysia’s FinTech industry. This year has been marked with strategic launches, pioneering partnerships, and notable recognitions, shaping Funding Societies’ impact on Malaysia’s financial landscape.
March: Consumer Product Launch by CardUp (Funding Societies Payments Solution)
In March, our payments division, CardUp, took a significant step forward by launching its consumer product. This move aims to empower individuals to earn card rewards on expenses that typically don’t accept card payments, thereby broadening the scope of CardUp’s innovative financial solutions in Malaysia. This initiative will revolutionise the use of credit cards for individuals in Malaysia by making it more rewarding.
April: CGC SME Portfolio Guarantee Partnership, its first collaboration with an SME digital financing platform and US$3B Disbursement Milestone
In April, Funding Societies announced a strategic partnership with Credit Guarantee Corporation Malaysia (CGC) to launch the SME Portfolio Guarantee (PG) scheme, a collaboration poised to bolster digital financing to empower SMEs and MSMEs in our local market. Simultaneously, the company celebrated a remarkable milestone, surpassing the USD 3 billion (RM13.4 Billion) disbursement mark in SME Financing. As we grow and expand to other nations, Funding Societies has helped boost the growth of nearly 100,000 SMEs across the five countries we operate in, driving financial inclusion. We look forward to bridging the gap even further.
May: Comprehensive Shariah-compliant Financing Solutions Launch
May marked the introduction of our Islamic financing solutions, underlining Funding Societies’ commitment to diverse financial offerings. At our media launch, Funding Societies rolled out a complete suite of Shariah-compliant financing solutions for MSMEs. We noticed an encouraging take-up from the market after the launch of Islamic financing. Since the formal introduction of Funding Societies’ comprehensive Islamic financing solutions, we have disbursed more than RM100 million in Shariah-compliant financing, exceeding our internal targets with 80% of leads eligible for Shariah-compliant financing.
June: Shariah-Compliant Guaranteed Investment Note (GN-i) launch and Partnership with AmBank
Funding Societies continued its innovation streak by introducing the Shariah-compliant Guaranteed Investment Note (GN-i). This move aims to provide investors access to a broad range of Shariah-compliant short-term investment opportunities across the return, risk and liquidity spectrum to cater for investors with different investment and liquidity needs.
Also in June, CardUp extended their partnership with AmBank, enabling their cardholders to use AmBank credit cards for personal and business expenses at a preferential rate. Cardholders were able to earn reward points on payments where cards are not accepted, at the same time using their approved credit limit to improve cash flow. This tie-up is the first of many bank partnerships that CardUp will eventually launch in the future.
July: Strengthening Partnerships and a Mention by our PM!
In July, Funding Societies entered into key collaborations with Chailease Berjaya Credit and Persatuan Pengimpot dan Peniaga Kenderaan Melayu Malaysia (PEKEMA), solidifying its leadership position in the used car dealership industry.
Furthermore, the company received recognition from none other than the Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, who highlighted our impactful contributions and participation in Ekonomi MADANI 2023: “Kerajaan alu-alukan syarikat pemula Malaysia seperti…Funding Societies yang boleh menjadi agen perubahan sektor PMKS melalui penyediaan pembiayaan alternatif…”.
August: CGC Digital DSCF Guarantee Partnership and New Islamic Investment Notes
August witnessed two pivotal announcements. First, the collaboration with CGC Digital aimed to empower MSMEs through Digital Supply Chain Financing (DSCF). Through the partnership, CGC Digital and Funding Societies developed a new digital credit guarantee product for CGC leveraging alternative data for MSMEs’ credit risk assessment and automation to process financing efficiently, enabling right-priced trade finance products for micro and small enterprises.
Secondly, Funding Societies introduced three new Islamic Investment Notes (Business Term Financing-i (MBIBT), Accounts Receivable Financing-i (MBIIF) and Accounts Payable Financing-i (MBIAP) for investors to diversify their portfolios. We also enhanced the investment experience with a UI update to enable Auto-invest into Islamic investment notes only.
September: Regional Debt Fundraise and powering Geran Digital PMKS MADANI in partnership with Bank Simpanan Nasional (BSN), Malaysian Communications and Multimedia Commission (MCMC), Malaysia Digital Economy Corporation (MDEC) and CardUp partnerships with JobStreet and Lazada
In September, Funding Societies showcased investors’ confidence in our mission and growth story of serving Southeast Asia’s SMEs by raising USD 27 million (RM126 million) in a debt fundraising round from institutional investors to bridge the credit gap for SMEs in Southeast Asia amidst uncertain macroeconomic conditions.
Subsequently, Funding Societies and our payment solutions platform, CardUp, played a pivotal role in supporting the RM100 million Geran Digital PMKS MADANI (GDPM) initiative. The GDPM is a matching grant programme introduced by the Ministry of Finance (MOF) through Budget 2023 designed to provide support to MSMEs, helping them incorporate digital solutions into their day-to-day business operations. CardUp operates the digital application platform and provides the essential payment platform to enable MSMEs to apply for the grant and pay for the matching amount digitally.
In addition to participating in the Ekonomi MADANI programme, CardUp continued its service to the business sector. Partnering with both JobStreet and Lazada separately to run cross-marketing initiatives, to empower businesses of all sizes and industries to use their personal or corporate credit cards to pay for any business expense – optimising cash flow by leveraging on CardUp’s solution to extend their payables.
October: Fintech Frontiers Awards Malaysia, SME Digital Finance & Payments Behaviours Report Launch and Partnership with HSBC
Funding Societies’ work in the fintech arena was celebrated at the inaugural Fintech Frontiers Awards Malaysia (FFAM) this year, where we secured victories in two categories out of the eight that we were nominated, snagging wins for Founder of the Year and Top Lending/Financing Startup.
Following that, we released the SME Digital Finance and Payments Behaviours Report. The report, which involved almost 1,000 respondents across the region, showcased the company’s commitment to industry insights and thought leadership, and our drive to enable digital SME finance for MSMEs.
CardUp continued to make waves in the area of partnerships with CIMB Bank, incentivising users to spend on their CIMB corporate credit cards by being part of their new card launch. Through the partnership, CIMB corporate cardholders can utilise their interest-free credit line on their corporate card to pay for any business expense, optimising their operating cash flow.
Additionally, CardUp also embarked on a bespoke supplier enablement program with HSBC to accelerate card usage among key clients, providing them with opportunities for cash flow improvements and optimisation of their working capital.
November: Norfund Debt Fundraise, Key Partnerships and Events
Funding Societies concluded the year on a high note, raising USD 7.5 million from Norfund a Development Financial Institution (DFI), which operates an investment fund owned by the Norwegian government for developing countries.
Additionally, strategic partnerships with SME Corp. Malaysia on its Bumiputera MSMEs Financing Initiative (BMFI) and Halal Development Corporation (HDC) further demonstrated our commitment to financial inclusion. Funding Societies’ impactful contributions were acknowledged by our Minister of International Trade and Industry of Malaysia (MITI), Tengku Zafrul Aziz. These acknowledgements and recognitions underscore the company’s significance in the financial technology landscape.
Closing out the quarter, Funding Societies continued to enhance its presence across different industries by participating in events such as InvestSmart2023, National OGSE Sustainability Forum and Jelajah Halal Malaysia. We had the opportunity to connect with investors and SMEs in person, sharing information and engaging them on our financing and investment opportunities and initiatives.
December: Partnership with Alliance Bank
Closing out the year, CardUp secured yet another partnership with Alliance Bank whereby Alliance Bank’s SME customers are entitled to partnership deals when making or collecting business payments on CardUp, improving cash flow by extending payables and improving their receivables.
The wrap-up
As we reflect on this year, Funding Societies has truly demonstrated its commitment to financial inclusivity, innovation, and impactful partnerships. As the journey continues, the future holds even more exciting possibilities for this trailblazing fintech company.
