Funding Societies, Lazada in SME financing tie-up

Co-founder and chief executive officer of Funding Societies, Wong Kah Meng(pic) said his company understands the difficulties faced by e-commerce traders in securing financing to build their online business, where they are often neglected by traditional financial institutions

KUALA LUMPUR: Peer-to-peer (P2P) financing platform, Funding Societies Malaysia is cooperating with Lazada Malaysia to offer short-term and e-commerce financing, specifically for traders on Lazada e-commerce platform.

In a joint statement, they said P2P platform is an alternative option for financing which has been gaining tremendous interest over the years.

The platform, it explained, has managed to decrease the financing gap by providing an attractive source of funding for local micro, small and medium enterprises (SMEs) to finance their business expansion as well as in meeting other financial needs.

Co-founder and chief executive officer of Funding Societies, Wong Kah Meng said his company understands the difficulties faced by e-commerce traders in securing financing to build their online business, where they are often neglected by traditional financial institutions.

“Therefore, our partnership with Lazada will allow traders to gain access to financing more easily through the Lazada platform. This is made easier by the use of alternative data from Lazada with consent, as part of our risk assessment process. As one of the more prominent economic pillars, P2P funding will enable rapid growth of the industry and contribute to a stronger e-commerce ecosystem,” he said.

Meanwhile, Lazada Malaysia chief executive officer Leo Chow said SMEs play an important role in developing the Malaysian economy and the e-commerce platform is well-positioned to drive their success. “As part of our commitment to creating a healthy and sustainable e-commerce ecosystem, we are now reducing the barriers for traders to build their brand in Lazada,” Leo said. — Bernama