JAKARTA (TheInsiderStories) – Indonesian FinTech company, KoinWorks obtained Series B and Series B2 funding worth of S$18.5 million (US$13.61 million from Japan venture capital, Saison Capital, said the management on Monday (11/04). The company become the first portfolio of unit Credit Saison in Indonesia.
Co-founder and CEO of KoinWorks Benedicto Haryono explained, the funding would be used to provide financial services for unbanked and underbanked businesses, especially MSME businesses. In addition, the company will also encourage the development of financial products for social commerce.
Currently, he said, there are very many business people who use social networks in their business. “However, there are still many social commerce businessmen who are constrained when getting access to finance for business development due to lack of documents, collateral, and business feasibility in the eyes of conventional financial institutions,” he adds.
Last July, the Indonesia’s Peer to Peer (P2P) announced has raised Series B funds worth of $16.5million from EV Growth, Quona Capital, with participation from existing investors.
In 2018, Koinworks had raised a Series A from investors PT Mandiri Capital Indonesia, Convergence Ventures, PT Gunung Sewu, Beeblebrox and Quona Capital.
KoinWorks, founded in 2016 by Haryono and Arifin. The company brings together borrowers and lenders online through a single platform that provides access to financial services for small and medium enterprises (SMEs) who have historically been un- or underbanked by traditional financial institutions.
Leveraging machine learning, KoinWorks enables borrowers to access low-interest loans while funders receive better returns. Available products include business financing and invoice financing.
“When we started KoinWorks, we set out to democratize finance in Indonesia while fostering financial inclusion. In just a few short years we’ve grown to have the largest retail investor base in Indonesia, with more than 300,000 users,” said the co-founder.
Arifin added, the round was oversubscribed, which means that the money raised only represents the amount of liquidity that existing shareholders were willing to make available, and does not reflect the true appetite of investors in KoinWorks.
“For the past three years, we have served the majority of Indonesia’s retailer market for the distribution of productive loans. Our rapid growth is supported by increasing public awareness of the importance of early investment,” KoinWorks’ co-founder and CEO Benedicto Haryono added.
Today more than 60 percent of investor-funders in KoinWorks’ platform are millennials, and 70 percent of investors say KoinWorks is their first investment product.
“The gap between access and convenience in providing investment products and loans makes KoinWorks a very unique fintech in Indonesia. We’ve been impressed by the company’s rapid growth,” said Willson Cuaca, Partner at EV Growth, a joint venture growth fund between East Ventures, Sinar Mas Digital Ventures (SMDV) and YJ Capital Inc.
Their role in enabling resources catalyzing SMEs growth cannot be overstated. We are thrilled to support KoinWorks as they consolidate their market leadership, Rengaswamy added. Quona Capital is a leading venture capital firm focused on fintech for inclusion in emerging markets, leveraging a strategic relationship with Accion, a nonprofit financial inclusion pioneer.
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