JAKARTA (TheInsiderStories) – A financial technology provider for education financing, PT Pinduit Teknologi Indonesia (Pintek), has received US$21 million debt facility from United States’ Accial Capital to Support Indonesia’ education ecosystem. The platform provides financial solutions for families in accessing all levels of education and vocational training through an installment program.
Ioann Fainsilber, CEO of SoCap & co-founder of Pintek, said, “We make products to help Indonesia’ education ecosystem at a critical point at this time.”
Michael Shum, chief investment officer of Accial added, “As a private debt investor focused on global impact, we have seen how important a strong education system is to economic development in a country. We are very pleased to be able to support the Indonesian education system through our partnership with Pintek.”
End of last year, the company has received funding led by Finch Capital, with participation from AccionVenture Lab and other investors, bringing the total equity of $5 million.Since its establishment in 2018 until now, Pintek has distributed education funding of more than Rp70 billion ($5.00 million) to more than 100 institutions and 3,000 students in 26 provinces in Indonesia.
“Until now, Pintek has collaborated with more than 80 formal and non-formal educational institutions through the Pintek Institutions and Pintek Students products,” said the co-founder and managing director, Tommy Yuwono.
Fainsilber claimed that the company’ revenues during the pandemic increased 12 times from January to September 2020 compared to the same period last year. With the fresh funding, he adds, the provider will investing on new products and technology.
The Indonesian Venture and Startup Capital Association (Amvesindo) reported that total funding to Indonesian startups reached US$1.9 billion until the third quarter (3Q) of 2020 with 52 transactions. According to the vice chairman, William Gozali, although the value was lower, the window for funding in local startup was still quite large.
“If it can grow by around $2 million in the fourth quarter of 2020, (the amount) is still less than 2019. The decline was caused by the funding cycle. Apart from the pandemic, the same thing happened throughout 2020,” he told in a virtual media gathering on Nov. 3, 2020.
In 2019, Gozali continued, the total funding was recorded $2.9 billion, higher than 2018 amounting to $1.4 billion. He continued, there are still plenty of room for venture capital companies to grow with startups in Indonesia.
Although the transaction values decreased, he assured, that the number of transactions continued to increase. In detail, funding in 2017 was 67 transactions. Then, 71 transactions in 2018 and 113 transactions in 2019.
The organization data also showed, until end of September, most of the funding goes for financial technology firm, with total eight transactions. Followed by funding for education technology with six transactions. Moreover, the software as a service sector also with six transactions, the new retail sector five transactions, the logistics sector and e-commerce for 4 transactions, respectively.
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