HSBC scales up support for local new economy businesses

HSBC today announced the launch of a US$150 million Venture Debt offering in Singapore, and a US$1 billion ASEAN Growth Fund, targeting new economy businesses.

Venture Debt Offering
High-growth companies in Singapore that are backed by venture capital or private equity investors can now access HSBC’s Venture Debt offering which provides flexible funding arrangements to accelerate their growth.

The new Venture Debt capability provides a longer term and flexible financing solution to companies, supporting a range of funding requirements such as capital expenditure, runway extension, or working capital for up to three years in tenor. Through HSBC Venture Debt, new economy clients can gain access to more specialised financing structures, including those involving equity warrant instruments.

ASEAN Growth Fund
In addition, Singapore-based digital platform businesses supporting e-commerce in the region can now tap on the newly launched US$1 billion ASEAN Growth Fund to achieve economies of scale across multiple international markets, grow their asset portfolios, and advance along the corporate lifecycle.

Both the new Venture Debt and ASEAN Growth Fund complement the existing US$200 million New Economy Fund, which was launched in 2021 to support the working capital needs of early-stage start-ups in Singapore¹, creating comprehensive financing solutions for new economy clients across different stages of growth.

Ms Priya Kini, Head of Commercial Banking, HSBC Singapore, said “Singapore has a thriving ecosystem of start-ups, investors, and accelerators which HSBC is part of. A common pain point we hear from start-ups is finding the right financing partner that understands their needs and can support them throughout their growth trajectory – from access to knowledge to skills and funding to strategic partnerships and network for their global expansion.”

Ms Kini added: “We know that profitability may not always reflect a company’s potential in its early stages. That is why we take a long-term view of potential growth by evaluating companies based on historical portfolio performance, key operating metrics, growth plans and customer acquisition strategies.”

Southeast Asia’s digital economy is among the world’s fastest-growing – worth US$218 billion as of 2023 and expected to reach US$600 billion by the end of this decade – with a compound annual growth rate of 16%.²

Recognised as the most innovative economy in Asia³, Singapore offers unparalleled opportunities for new economy businesses. Its culture of innovation, strong intellectual property protection laws, and its status as an international financial centre, alongside strong government support through grants and tax incentives, have positioned Singapore as a regional technology hub. Singapore is now home to over 5,000 start-ups, 527 investors, and 247 incubators and accelerators.⁴

HSBC Singapore is committed to supporting the thriving startup ecosystem
Besides extending innovative financing solutions to the companies, it is also critical to support the investors as they play a key role in providing funding from inception to growth-stage. Specifically, HSBC Singapore has set up a dedicated coverage team to better support investors’ transaction banking and funding needs. In addition, the Bank continues to support industry initiatives that help expand the network of new economy businesses as well as work with like-minded businesses such as Antler⁵ to connect them to opportunities through knowledge exchange and networking.

Similarly, HSBC Singapore will continue to scale-up its digital transaction banking capabilities to support businesses’ regional expansion needs. A recent HSBC survey targeted at 600 businesses operating in Southeast Asia highlights that a majority (86%) of Singapore-based firms plan to expand into more ASEAN markets in 2024. Singapore businesses (46%) also plan to invest further into digitalisation of their operations as a lever for expansion.

HSBC is already at the forefront of driving digital trade transformation in ASEAN. Businesses in Singapore, including new economy clients, have access to a range of digital transaction banking solutions, enabling them to focus on business priorities and development in the region.

Key solutions offered to Singapore new economy businesses operating in multiple markets:

1. HSBC SmartServe
   A single digital platform that makes opening business accounts quicker and more seamless. Find out more: HSBC SmartServe
2. HSBC TradePay
   A straight-through digital solution for trade loans, HSBC TradePay, enables businesses to concurrently draw funding and make near real-time supplier payments with just a payment instruction file. The solution vastly improves user experience with a simple and reliable digital process to manage their payments and working capital efficiently, and at the same time improving their cash flows and saving on loan interests. Find out more: HSBC TradePay
3. HSBC Omni Collect
   A market-leading digital solution to help businesses remove the cost and complexity surrounding the set-up of their on-site digital payment infrastructure. It is a one-stop collections solution that allows brick-and-mortar stores, kiosks and e-Commerce sites to accept multiple popular payment types, across Asia with standardised reconciliation reports. Find out more: HSBC Omni Collect

Media enquiries:

Betty Fong betty.c.y.fong@hsbc.com.sg +65 6658 4103