‘We want to pay it forward’: Funding Societies raises $25M to boost capital for SMEs in Southeast Asia

Small and medium-sized enterprises (SMEs) account for nearly 50% of Southeast Asia’s GDP, contributing to job creation, innovation, and overall economic expansion. Nevertheless, as in other parts of the world, SMEs in Southeast Asia face challenges when it comes to sufficient working capital. In a nutshell, SMEs are typically deemed too risky for traditional banks to lend to them, so those banks charge high rates, if they approve them at all.

Kelvin Teo and Reynold Wijaya, two entrepreneurs from Southeast Asia who met while both were getting graduate degrees at Harvard Business School (HBS), were acutely aware of that gap back home. Inspired by HBS’ stated mission to “make a difference in the world,” they set out to address it.