Grup Modalku, the leading digital financing platform for SMEs in Southeast Asia, has secured a strategic equity investment from Gobi Partners, an Asia-focused venture capital firm. This investment underscores strong investor confidence in Modalku’s business model, resilience, and commitment to addressing the credit gap for SMEs, even amid increasing caution within the fintech industry.

Enhancing Financial Stability Amid Market Volatility

With market uncertainty rising, investors are exercising greater caution toward fintech companies. Gobi Partners’ investment strengthens Modalku’s financial foundation and supports its long-term growth. Over the past decade, Modalku has built a strong reputation as a reliable funding platform for SMEs needing access to capital.

Kelvin Teo, Co-founder and Group CEO of Funding Societies, welcomed the partnership, stating, "We are honored to receive strategic investment from Gobi Partners. As market conditions heighten scrutiny on fintech firms, this partnership validates our strong fundamentals and dedication to financial inclusion. SMEs remain the backbone of Southeast Asia’s economy, and we will continue to provide accessible and responsible financing solutions to help them thrive."

Technology-Driven Solutions to Close the SME Credit Gap

Southeast Asia’s SME sector continues to face a significant credit shortfall, estimated at over Rp 41k trillion. Modalku is at the forefront of delivering innovative funding solutions tailored to SMEs' needs. The investment from Gobi Partners will strengthen Modalku’s technology-driven approach, integrating artificial intelligence (AI) and automation to streamline funding processes and enhance risk management.

Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners, emphasized Modalku’s impact in the region: "Modalku has consistently demonstrated strong business execution and a meaningful impact across the region. Our investment reflects our confidence in their ability to navigate economic cycles, drive fintech innovation, and continue addressing SME credit challenges. We are excited to collaborate with them on this journey to enhance financial inclusion in Southeast Asia."

Expanding Digital Financial Services for Economic Growth

Despite economic uncertainty, Modalku remains dedicated to empowering SMEs with digital financial products designed to support business growth. To date, the platform has disbursed over Rp 69 trillion in business financing to nearly 100,000 SMEs. With digital financial services playing a crucial role in boosting financial inclusion, the partnership with Gobi Partners will enable Modalku to expand its reach and further support SMEs driving local economies.

Sustaining Growth Through Strategic Funding and Responsible Lending

Modalku is well-positioned to maintain its growth momentum while upholding responsible lending principles. Backed by strong investor support, the company has secured significant funding milestones in 2024, including equity investments from Cool Japan Fund and Maybank. Additionally, Modalku secured its third annual credit facility from HSBC’s ASEAN Growth Fund, bringing total credit commitments with the bank to over Rp 1.6 trillion.

PHOTO: MODALKU

This article was created with AI assistance.