Funding Societies (dubbed Modalku in Indonesia), Southeast Asia’s leading SME digital finance platform, has unveiled a $16 million Employee Stock Option Plan (ESOP) repurchase for current and past workers. The ESOP repurchase is the fourth time the FinTech platform has carried out this activity. Employees and firm alumni had already cashed out $3.5 million in ESOP shares.
The ESOP policy of Funding Societies was created with inclusion and equity in mind. Under the repurchase program, all qualified past and present workers would have the ability to sell their shares to new investors at no loss to the Series C+ preference share price, as opposed to the industry standard 20% discount. Employees can also maintain their ESOP or exchange their vested ESOP for shares
Many Funding Societies workers, including new recruits, are eligible under the ESOP policy. For qualified new recruits, the firm gives 50% of total yearly income in ESOP allocation, leading the market and changing industry norms. In its ESOP program, Funding Societies also lays a great focus on long-serving workers. On each 2-year anniversary of joining the firm, eligible loyal workers are eligible to an ESOP. Since Funding Societies’ establishment, more than 120 present and past workers have received cash prizes as a result of this share buyback.
The announcement comes only one month after the business received a C+ $144 million equity investment round headed by SoftBank Vision Fund 2 and other investors such as Ascend Vietnam Ventures, K3 Ventures, Indies Capital, EDBI, Rapyd Ventures, and VNG Corporation.
The transaction also includes a loan line of $150 million from institutional lenders in Europe, Asia, and the US. The majority of the cash obtained will be used to promote firm services for micro, small, and medium enterprises (MSMEs) throughout Southeast Asia. A sum of $294 million in funds were raised.
Reynold Wijaya and Kelvin Teo of Harvard Business School created Funding Societies in 2015 to boost MSMEs in Southeast Asia. The Financial Technology firm addresses MSMEs’ critical development pain points, beginning with the region’s $300 billion finance deficit. Funding Societies provides micro loans ranging from $500 to $1.5 million that may be released in 24 hours, providing prompt assistance to MSMEs that face the crucial difficulty of getting business capital.