Modalku and Golden Gate Venture provided Series A funding for Paper.id, a service (Saas) startup, said the Co-founder today (10/29) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian crowdfunding platform, PT Mitrausaha Indonesia Group (Modalku) and Golden Gate Venture provided Series A funding for Paper.id, a service (Saas) startup, Kontan reported today (10/29). No further detail on the amount but usually the average amount in the Series A starting from Rp10 billion (US$714,285) to Rp 33 billion. 

“We cannot disclose the funding amount. The important thing the proceed will help the growth of Paper.id,” said COO & co-founder I Modalku Iwan Kurniawan.

Through the fresh investment, Modalku, will provide loans to small medium enterprises (SMEs) owned by Paper.id. There are 100,000 SMEs that have used digital invoice services at the company platform, said the co-founder.

Both companies have established the cooperation since two months ago. The loan products offered by Modalku through Paper.id are invoice financing. In addition, Kurniawan said, his company still open the opportunities to invest in other start-ups that can drive Modalku businesses.

Modalku officially obtained a business license from the Financial Services Authority (FSA) on Sept. 30, 2019. Beside Indonesia, the provider also operates in Singapore and Malaysia under the name Funding Societies. Before pocketing a business license from FSA, the company was officially registered and supervised by the agency since 2017.

Reynold Wijaya, co-dounder & CEO of Modalku, said, “The objective Modalku to become an alternative credit option and investment alternative for SMEs and individuals in Indonesia. Open access to funding and investment alternatives is a form of support for financial inclusion programs. With financial inclusion, the Indonesian economy will get stronger.”

In 2019, seven out of 10 Indonesian SMEs still do not have access to obtain loans. In other words, there are around 74 percent of SMEs in the country who face obstacles to grow and develop.

As the backbone of the economy, SMEs have an important role in dealing with recessions that may occur. Therefore, the crowdfunding firm continues to strive to ensure that all SMEs are eligible for access to the loans they need.

So far, Modalku Group has disburse loans around Rp9.79 trillion, mostly for SMEs.

Written by Staff Editor, Email: theinsiderstories@gmail.com