27 March 2024

HSBC scales up support for local new economy businesses

  • Introduces new US$150 million Venture Debt offering and US$1 billion ASEAN Growth Fund aimed at scaling high-growth companies and digital platform businesses respectively.
  • Complements existing US$200 million New Economy Fund which supports early-stage start-ups.

Both the new Venture Debt and ASEAN Growth Fund complement the existing US$200 million New Economy Fund in Singapore

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

Note to Editors:

New Economy Business Funding Schemes (Singapore)

New Economy Fund Venture Debt Fund ASEAN Growth Fund
Dedicated capital US$200m US$150m US$1bn
Shareholders / Investors Venture capital, private equity Venture capital, Private equity Individuals, corporates, venture capital, private equity, financial institutions
Security Cash or other collateral Shares and assets Cashflow-generative assets (including receivables)
Warrants N/A May include warrants N/A

About the ASEAN Growth Fund
The HSBC ASEAN Growth Fund is announced across six key ASEAN markets - Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The US$1 billion fund aims to provide funding to digital platform businesses including e-Commerce players as they scale-up and expand across ASEAN.

HSBC commissioned an online survey of 600 businesses based in six ASEAN markets: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Survey respondents were key decision-makers from companies with annual turnover of at least US$50 million who are already doing business in ASEAN. The survey ran from February 14 to February 27, 2024.

The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,039bn at 31 December 2023, HSBC is one of the world’s largest banking and financial services organisations.

1 HSBC launches Fund to support high-growth tech companies - About HSBC | HSBC Singapore

2 e-Conomy SEA 2023 | Bain & Company

3 Global Innovation Index 2023 – Innovation in the face of uncertainty (wipo.int)

4 Startup SG - The Singapore Startup Ecosystem

5 HSBC collaborates with Antler to support the growth of the next generation of entrepreneurs and start-ups - About HSBC | HSBC Singapore