Hong Kong Fintech FundPark Secures US$500 Million Funding Facility from Goldman Sachsby Fintech News Hong Kong January 22, 2024
FundPark, a fintech startup focusing on trade finance for small and medium enterprises (SMEs), has obtained a US$500 million (HK$3.9 billion) funding facility from Goldman Sachs.
This marks the second funding initiative between FundPark and the investment bank, doubling the initial facility provided in 2022.
Anson Suen Wai-loi, CEO and co-founder, stated that the increased investment reflects confidence in FundPark’s past performance and ability to utilise the capital efficiently.
The funds will be directed towards providing trade finance solutions to SMEs, a sector often underserved by traditional banking institutions. The Asian Development Bank estimates a global financing gap of US$2.5 trillion (HK$19.5 trillion) for small businesses in this area.
FundPark, founded in 2016, offers trade finance to SMEs by securing loans against their cashflows, inventory, or receivables.
The company is said to have disbursed US$2 billion (HK$15.6 billion) to over 16,500 SMEs, focusing mainly on the cross-border e-commerce sector.
The company uses an AI-driven credit model to assess borrowers, providing financing solutions without traditional collateral like property.
The new funds will support the extension of loans to digital SMEs and enhance FundPark’s technology and data analytics capabilities. The company also plans to expand beyond its current Greater China, Southeast Asia, Europe, and the US markets.
Featured image credit: Edited from Unsplash