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AVANA partners with Funding Societies to offer micro financing to social sellers

PETALING JAYA, SELANGOR, MAY 30 - AVANA, Malaysia’s leading e-commerce enabler in the space of social commerce has partnered up with Funding Societies, the first and largest peer-to-peer (P2P) financing platform in Malaysia. Through this partnership, AVANA aims to bridge the gap of micro financing for social sellers mostly comprising Micro, Small and Medium Enterprises (MSME) and Small and Medium Enterprises (SMEs) via short term financing solutions.

Luqman Adris, CEO of AVANA, says, “We are very enthusiastic about this partnership. Currently there is a big gap in terms of microlending to small sellers. We have spoken to banking institutions and other institutional lenders and we realised that the process is just too complicated for small sellers to go through. Alternative debt financing platforms such as P2P financing is becoming an increasingly important avenue for SMEs to obtain financing to support their business growth as traditional financial institutions further tighten their credit. Most of these sellers just need a bit of a push in terms of capital to carry them to the next level. We are also looking on how we can do this in Indonesia, where we are serving thousands of sellers there.”

SMEs can expect up to RM50,000 in working capital financing to expand their business via a smooth and fast online-based process. One of the main advantages that benefits SMEs is that they do not have to provide collateral as part of financing requirements as required by conventional banks.

Wong Kah Meng, CEO of Funding Societies, says, “Through our partnership with AVANA, we are launching our first product tailored for e-commerce merchants. By leveraging on alternative data of SMEs via AVANA's platform, with consent, we will be able to provide a seamless application procedure with minimal documentation requirements. Combined with our expertise in leveraging alternative data for risk assessment, we will also be able to increase access to financing for SMEs who have previously been underserved or unserved by traditional financial institutions. This will therefore enable SMEs to focus on their businesses while we take care of their financing needs.”

Securities Commission (SC) had previously remarked that the SMEs sector in Malaysia has a financing gap of more than RM80 billion, despite making up 98% of all Malaysian businesses. In an effort to address the financing gap, Funding Societies to-date has regionally crowdfunded RM1.84 billion with default rate at around 1.01%.

Please visit https://avana.asia/fundingsocieties for more information


AVANA is Malaysia's leading social commerce enabler that helps small businesses convert social media from promotional to transactional platforms and helps digitize social commerce. AVANA partners with the likes of Facebook, Google, marketplaces and other big players in the region to aggregate sellers from these channels in one single dashboard and help them grow their businesses via automation and technology. AVANA currently has more than 55,000 sellers on-boarded onto our platform with customers from Malaysia, Indonesia, Singapore and Hong Kong, and we are focused in helping this micro to SMEs to automate their business processes, increase sales and improve their livelihood.

About Funding Societies

Funding Societies is the first and largest P2P financing platform in Malaysia. The P2P financing platform connects SMEs with investors through an online marketplace, thereby increasing access to financing for SMEs. Funding Societies is also present in Singapore and Indonesia (where it is known as Modalku), thus emerging as one of the largest SME digital financing platforms in Southeast Asia. Both Funding Societies and Modalku have disbursed more than RM1.8 billion in working capital to SMEs across Southeast Asia since its establishment. For more information on Funding Societies Malaysia, please visit https://fundingsocieties.com.my.