Digital financing platform offers USD 3.5 million in staff shares

SINGAPORE: SME digital financing platform Funding Societies has announced a fourth round of its Employee Stock Option Plan (ESOP), worth some USD 16 million.

Kelvin Teo, Co-founder/Group CEO, Funding Societies | Modalku

Previous rounds of the scheme have seen past and present employees cash out USD 3.5 million, so this latest round is causing a stir amongst staff, the company, also known as Modalku in Indonesia has said.

Under the buyback plan, all eligible former and current employees may sell their shares to prospective investors to the Series C+ preference share price without discounts, as compared to the industry's customary 20% discount. Employees may also convert their ESOP shares to become fully fledged company shareholders.

Over 120 current and former employees received cash rewards from this share buyback.

The plan came a month after the firm received a total of USD 294 million in equity funding, to be used for its micro-, small and medium enterprises services across Southeast Asia.

Kelvin Teo, Co-founder and Group CEO of Funding Societies, said 2021 saw the lowest employee attrition rate and the highest employee happiness scores since the company was founded.

"Despite the impact of Covid-19, we have taken deliberate steps to appreciate our team across various initiatives including internal communications, learning and development, and ESOP, among others.

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