Choco Up secures $15M private credit facility from AlteriQ Global for Singapore SMEs
What's the deal? Choco UpDealroom has a profile for this one. Try Dealroom →, a growth financing platform for small businesses, has secured a $15 million private credit facility from AlteriQ GlobalDealroom has a profile for this one. Try Dealroom → to expand its lending capacity for Singapore SMEs. The first drawdown under the facility has already been completed.
The facility is expected to support around 500 Singapore SMEs through growth and working capital financing.
"This partnership strengthens our ability to support entrepreneurs with financing solutions that help them act on opportunities with greater confidence and speed," said Percy Hung, chief executive officer and founder of Choco Up.
Why now? Demand for financing from Singapore SMEs has been climbing fast, with Choco Up reporting an 85% year-on-year increase in financing applications. The company has disbursed more than S$100 million to local businesses since launch.
AlteriQ Global managing director Zhi Yong Heng said SMEs remain a key driver of innovation and employment but many still struggle to access capital that fits their growth needs.
What could go wrong? Private credit to SMEs carries inherent risk — small businesses are more vulnerable to economic downturns and cash flow disruptions. A $15 million facility spread across roughly 500 companies means relatively small individual loans, which can be expensive to underwrite and monitor at scale.
The signal: Choco Up, classified as a breakout-stage platform by Dealroom, is reaching an inflection point where its own balance sheet can no longer keep pace with 85% annual growth in applications — making third-party credit facilities essential to scale. AlteriQ Global's involvement as a corporate investor backing SME private credit suggests institutional appetite for the asset class in Singapore is firming up, even as traditional banks remain cautious lenders to smaller businesses.
Read more: dealstreetasia.com
