Modalku, Southeast Asia's leading digital SME financing platform, has successfully secured an equity investment of IDR 398 billion (USD 25 million) from Cool Japan Fund (CJF), marking CJF's first investment in a Southeast Asian fintech company. This significant investment will help Modalku strengthen its operations across five key markets: Singapore, Indonesia, Malaysia, Thailand, and Vietnam.

The funding will be directed towards enhancing Modalku's core SME financing business, with a focus on faster payment solutions through innovative funding methods. The company plans to leverage advanced technologies like AI to streamline and automate the initial funding process. This aligns with Modalku's mission to accelerate growth and profitability while ensuring efficient service for small and medium-sized businesses.

CJF, a Japanese government-backed fund, has a history of investing in businesses globally. The partnership is set to enhance trade relations between Japan and Southeast Asia, particularly through improving financial services that help local businesses connect with Japanese enterprises. With this investment, Modalku aims to bolster its support for Japanese companies operating in the region.

Kenichi Kawasaki, President and CEO of CJF, expressed confidence in Modalku’s ability to assist Japanese businesses as they navigate expansion in Southeast Asia. He highlighted that the region is increasingly attracting Japanese companies, and this partnership will help them overcome market-entry challenges.

Kelvin Teo, co-founder and Group CEO of Modalku, emphasized the significance of this collaboration, noting that many businesses in Southeast Asia already have connections with Japanese suppliers and customers. This partnership will further cement Modalku’s role in supporting business growth within the region.

The Southeast Asian digital finance market continues to expand rapidly. Projections suggest digital finance revenue will grow significantly, driven by digital funding, which is expected to account for 65% of total revenue by 2030. Modalku's growth reflects this trend, having already facilitated over IDR 63 trillion in business financing and served over 100,000 SMEs.

This strategic partnership with CJF follows Modalku's significant achievements in 2024, including an equity investment from Maybank and a third-year credit facility from the ASEAN Growth Fund of HSBC. Modalku’s role in transforming financial services for SMEs in Southeast Asia continues to grow as the company’s innovative digital platform creates new opportunities for local businesses.

PR KONTAN