JAKARTA (TheInsiderStories) – Indonesia’s Peer to Peer (P2P) Fintech Lending KoinWorks announced its Series B fundraise of US$16.5 million. The oversubscribed round was co-led by EV Growth and Quona Capital, with participation from existing investors.
The new funding will be used to expand the KoinWorks team and partnerships, and further develop systems and technology to provide financial inclusion throughout Indonesia with its popular one platform.
KoinWorks 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 KoinWorks’ co-founder and Executive Chairman Willy Arifin in a written statement on Thursday (06/27).
Arifin adds 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.
“KoinWorks shares Quona’s mission of financial inclusion, and has had a dramatic impact on businesses in Indonesia as a result of their commitment to responsible lending,” said Ganesh Rengaswamy, co-founder and Partner at Quona Capital.
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.
KoinWorks had previously raised a Series A in 2018 from investors PT Mandiri Capital Indonesia, Convergence Ventures, PT Gunung Sewu, Beeblebrox and Quona Capital.
KoinWorks, founded in 2016 by Haryono and Arifin, is the largest peer-to-peer (P2P) lending platform in Indonesia, registered and supervised by the Indonesia Financial Services Authority.
While, EV Growth is a $200 million joint-venture fund between East Ventures, SMDV – the VC arm of Indonesian conglomerate Sinar Mas – and YJ Capital, the VC arm of Yahoo Japan. EV Growth invests in growth-stage startups in Southeast Asia, primarily focusing -on Indonesia. EV Growth has backed startups from different sectors including Sociolla, IDN Media, Moka, Warung Pintar, and Ruangguru.
Then, Quona Capital is a scale-up stage venture firm focused on financial technology for inclusion in emerging markets. To date, Quona has supported more than 25 financial technology companies expanding access for underserved consumers and small businesses in Latin America, South and Southeast Asia, and Sub-Saharan Africa.
Written by Lexy Nantu, Email: email@example.com