DigitalCFO Newsroom | 21 April 2022
Hong Kong FinTech ramps up expansion plans as its sets eye on Series B.
FundPark, Asia’s eCommerce liquidity solution and technology provider, has announced the closing of an asset-backed securitization (ABS) facility of up to US$250 million with Goldman Sachs as senior facility provider.
Through this ABS facility, FundPark’s proprietary platform will serve to bridge the working capital finance needs of small to medium-sized enterprises (SMEs) engaging in cross-border eCommerce business.
Anson Suen, CEO and co-founder, FundPark, said “We are delighted to secure a landmark deal with Goldman Sachs for an ABS facility. Integrated Alternative Credit Fund and Cypress Capital Hong Kong Limited also participated as Mezzanine Investors. We believe this is a testament to our strategic vision at FundPark of supporting SMEs in the eCommerce sector, by leveraging our proprietary risk assessment model and our market leading position in this space. This facility will also underpin the continued exponential growth we have planned for FundPark by diversifying our capital base and ensuring competitiveness of our cost of capital.”
SMEs are the backbone of the Asian economy, representing 96% of all businesses in the region and providing two out of three private-sector jobs. Yet according to the Asian Development Bank’s latest figures, over 40% of SMEs have their trade finance requests rejected and contributing to a US$1.7 trillion trade finance gap. FundPark’s proprietary platform focuses on the fast growing eCommerce sector and has helped over 7,000 merchants bridge this gap, providing them with fast, and much-needed working capital finance. With the goal to create social value, FundPark works with different financial institutions with the shared vision including long-term partners such as Silverhorn’s impact investing arm.
Since its establishment in 2016, FundPark has grown significantly, with loan advancements of over US$600 million. The Series A-backed fintech company is now ramping up its expansion plans having already supported SMEs with combined GMV in excess of US$4billion. Furthermore, the company also expects to raise a Series B round later in the year.
Hay Yip, COO, FundPark, said “Successful management of working capital and cashflow is critical for the sustainability of any business, particularly for SMEs operating under the current volatile market impacted by dynamic macro headwinds.
“Our platform helps businesses by providing timely funding that matches with their cash conversion cycle and thus optimising their working capital efficiency. With this facility, FundPark will be able to broaden our reach to even more SMEs and provide them the benefit of our unique solutions.”