Photo by Cashlez

JAKARTA (TheInsiderStories) – Local venture capital firms, PT Mandiri Capital Indonesia (MCI) again leads investment funding to startup in the field of financial technology Cashlez, a digital player payments worth of US$2 million. The signing of the agreement was made on July 12.

For information, Cashlez is a technology payment company with mPOS (mobile point of sale) system established since 2015 ago. The company offers the concept of receiving payments by credit card or application-based debit on smart-phones connected with a card reader via bluetooth.

Previously in the same month, unit of PT Bank Mandiri Tbk (IDX: BMRI), MDI Ventures (unit of PT Telkom Indonesia Tbk: TLKM), PT Gunung Sewu and PT Mahanusa Capital give a pre-Series A funding worth of $500,000 for PrivyID, a local startup fintech business with digital signature products,

President Director of Mandiri Capital Eddi Danusaputro said the company’s decision to invest in Cashlez is due to the increasing trend of digital transactions in Indonesia. Including used by the business actors of small and medium enterprises (SMEs).

With the current business development, small and medium-sized business actors are called requiring a more effective and efficient transaction system, He said.

CEO of Cashlez Teddy Setiawan added, since its establishment until the third quarter of last year, it has established cooperation with about 1,000 merchants and around 61 percent of users come from retail and travel tourism.

According to Eddi, electronic signature products have a huge market opportunity because potential clients such as multi finance, banking, employment, franchising, financial technology, online outlets, and others can improve the company’s logistics efficiency.

“This is the latest business model that offers a paperless concept to answer the needs of business actors for efficiency and business optimization,” He stated.

As an investor, Eddi continued, his side will also develop Cashlez and PrivyID through business assistance and product promotion support by utilizing customer base at Bank Mandiri Group.

PrivyID, which has registered more than 500,000 users, is expected to provide added value to MCI. The company founded by Marshall Pribadi and Guritno Adisaputro, and is currently serving about 49 enterprises and 550,000 individual customers. PrivyID aims to grab up to 4 million new customers by the end of 2018.

Chairman of Financial Service Agency (OJK) Muliaman Hadad has said, globally, the fintech industry has been progressing very fast. In the past two years, this phenomenon has also been seen in Indonesia.

He continued, shifting people’s preferences on digital services with
utilizing the use of computer technology, mobile phones, smart-phones,
And the use of mobile internet has fueled the development of the fintech industry in Indonesia.

“Therefore, We encourage the establishment of collaboration and synergy between finTech industries with telecommunications companies and the financial services industry,” Muliaman said.

In response to these developments, He stated, OJK have formed Task Force Development of Financial Innovation, and published Guidelines for Fintech industry players.

President Joko Widodo has target the e-commerce transactions in Indonesia will reach $130 billion by 2020. Recently, the government altered regulations to allow more foreign investment in this sector to attract more capital into e-commerce business in the country. 

(Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com)

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