Indonesian fintech firm Komunal announced that it has raised US$ 8.5 million in a funding round led by venture capital firm East Ventures.

This funding round is also participated by AlphaTrio Sustainable Technology Fund, Skystar Capital, Sovereign’s Capital, Ozora, and Gobi Partners.

The raise comes on the heels of a US$2.1 million Series A financing round in September last year.

Komunal said that it will use the funds to “accelerate financial inclusion and strengthen the neo-rural bank ecosystem in Indonesia, especially outside the Greater Jakarta area”.

The fintech which positions itself as a neo rural bank has two main business lines namely DepositoBPR and Komunal P2P Lending.

The first offering is a BPR (rural banks) deposit marketplace application in Indonesia and the latter is a peer-to-peer lending platform that connects potential MSMEs with lenders.

In 2022, Komunal has disbursed US$230 million (equivalent to IDR 3.6 billion) worth of deposits and loans to local BPRs and MSMEs.

According to Komunal, more than 220 BPRs from across 19 provinces in Indonesia have joined the DepositoBPR by Komunal platform since its launch.

Komunal also announced the appointment of Dr. Peter Jacobs as Commissioner. Dr. Peter was formerly the xecutive Director – Head of the Banking Service, Licensing, and Treasury Operation Department at Bank Indonesia.

Hendry Lieviant, CEO of Komunal said,

“In 2023, we hope to reach a wider market, particularly BPR users and partners outside of Java and Bali. We are optimistic that the collaboration between fintech and incumbent banks, including rural banks, will create a very strong synergy.

 

Komunal sees the potential for partnerships with BPRs to increase financial inclusion for MSMEs in tier 2 and 3 cities.”

Willson Cuaca, Co-Founder and Managing Partner of East Ventures said,

“As the early supporter of Komunal, we have witnessed the growth and many achievements of Komunal.

 

We believe in the resilience and innovation that Hendry and the team have and will continue to present, which will further accelerate digitalisation in the financial sector.”