The Malaysian Debt Ventures (MDV) has collaborated with Funding Societies on a pilot fund of RM500,000 to be invested via the Southeast Asian SME digital financing platform that will go to empowering high-potential tech-based startups and micro, small and medium-sized enterprises (MSMEs).
The investment is aimed at propelling underserved businesses, with focus on those aligned with the Ministry of Science, Technology and Innovation (MOSTI)’s 10-10 Malaysian Science, Technology, Innovation and Economy (MySTIE) Framework, and to help the industry manage the post-pandemic recovery phase and regain momentum.
Co-founder and Chief Executive Officer of Funding Societies Malaysia, Wong Kah Meng commented that the participation by MDV as an institutional investor will allow their company to enable more tailored financing solutions for underserved tech-based businesses, leveraging on our credit underwriting expertise of businesses operating in the digital economy.
“This is very much in-line with MDV’s objective of supporting the technology ecosystem through flexible, accessible and innovative financing solutions to catalyse growth.”
Following that, Nizam Mohamed Nadzri, Chief Executive Officer of MDV said, “MDV’s participation in Funding Societies is expected to create significant impetus to the growth of the local fintech market and support MDV’s own venture debt customers who are in the space.”
“Funding Societies’ platform and reach have proven to be effective in providing tech MSMES with access to much-needed financing facilities in a timely and seamless manner, and MDV is pleased that we are able to make our mark in this growing market through this partnership.”
The investment programme comes on the back of the Government’s efforts to ramp up the growth of startups and technology-based businesses and encourages participation from both public and private segments.