Indonesian Neobank KOMUNAL Gears Up for Expansion with US$5.5M Fundingby Fintech News Indonesia January 8, 2024
Indonesian fintech company KOMUNAL has secured US$ 5.5 million in a Series A+ funding round led by Sumitomo Corporation Equity Asia.
The fundraise also saw participation from several venture capital firms including Jafco Asia, Skystar Capital, Sovereign Capital, and Gobi Partners. This funding boost comes after KOMUNAL’s operational profitability in the second half of 2023.
KOMUNAL has partnered with 376 rural banks across Indonesia, offering productive loans primarily to Micro, Small, and Medium Enterprises (MSMEs) predominantly based in the country’s tier 2 and 3 cities.
One of its key services, DepositoBPR by Komunal, allows Indonesians to deposit funds digitally in rural banks, offering higher interest rates than commercial banks. These deposits are also guaranteed by the Indonesia Deposit Insurance Corporation (LPS).
With the fresh funds, KOMUNAL aims to expand its product offerings and develop close partnerships with more rural banks, particularly those outside Java and Bali.
In 2023, KOMUNAL reported a significant growth, channeling a total of US$ 600 million in combined loans and deposits, nearly three times the amount of the previous year.
Through its KomunalP2P platform, the company disbursed US$ 250 million in loans to over 1,300 MSME projects. Additionally, DepositoBPR by Komunal channeled US$ 350 million in deposit funds to rural banks nationwide.
“Without the backing of our investors, rural bank partners, regulators, and the entire KOMUNAL team, these milestones would not be possible. We firmly believe that rural bank digitisation is pivotal to nurture financial inclusivity in Indonesia.
We will continue to innovate and bring meaningful impacts to Indonesia’s massive population base, especially the underserved yet promising MSMEs in tier 2 and 3 cities.”
said Hendry Lieviant, Co-Founder & CEO of KOMUNAL.