Funding Societies, Foodpanda disburse US$242K to small businesses
By Digital News Asia June 11, 2021
- Up to 30K merchants across Foodpanda network stand to benefit
- Foodpanda merchants get access to financing with minimal documental, fast disbursement
Small medium enterprises (SMEs) financing platform Funding Societies Malaysia and food delivery marketplace Foodpanda have announced a strategic partnership to offer short-term digital financing solutions for registered merchants under the latter’s network.
The collaboration, aimed at enabling local micro SMEs access more business financing opportunities, has collectively disbursed US$242,833 (RM1 million) in financing, Funding Societies said in a statement.
According to both parties, as many as 20,000 to 30,000 merchants across multiple segments under the Foodpanda network stand to benefit from the tailored financing solutions offered by Funding Societies.
“Driven by our mutual aim to extend support to micro SMEs who are undoubtedly one of the hardest hit segments during this prolonged challenging time, our partnership with Foodpanda enables the merchants under its large network to obtain collateral-free, short-term financing solutions with the added benefits of quick and seamless online application experience,” said Wong Kah Meng, co-founder and chief executive officer of Funding Societies Malaysia (pic).
Wong said the RM1 million disbursement achieved thus far through this collaboration alone is a testament of the micro businesses' confidence in digital financing as a viable financing option. It further reinforces its steadfast commitment to serving the underserved and unserved businesses across all segments, he added.
Through the partnership, micro businesses can access pre-approved financing offered by Funding Societies, which leverages on Foodpanda’s database including the merchants’ sales transactions in their credit assessment, it said.
Eligible merchants under the Foodpanda network get to receive financing with minimal documentation required, fast disbursement with approval as quick as three working days, with flexible repayment tenure of up to 18 months with no collateral requirement, it added.
As part of the partnership, Funding Societies is set to offer one of its newest products, the Micro Credit Line, to eligible foodpanda merchants.
The facility enables micro SMEs to draw a short credit period of between 30 days and 90 days at any given time. The credit can be used for a variety of business purposes such as inventory purchase, payment to suppliers, or as an emergency fund, Funding Societies said.
“As a nation, we have experienced unprecedented times in the past year. We wanted to be able to provide our vendors with financing opportunities to enable them business continuity despite the challenges they face,” said Sayantan Das, managing director of Foodpanda.
“The partnership we have established with Funding Societies has enabled us to provide our vendors with the assistance they need. The feedback received from our vendors to date has been nothing but positive and we are delighted to have been able to play a small part in their success story.”
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