Investree Plans Major Restructuring After CEO Adrian Gunadi’s Resignationby Fintech News Indonesia February 1, 2024
Investree, a peer-to-peer (P2P) lending fintech platform in Indonesia, has announced plans for a significant restructuring process to support its debtors who are facing financial difficulties.
This move comes in the wake of the resignation of its CEO, Adrian A. Gunadi, whose departure was confirmed by Investree Singapore Pte. Ltd, the majority shareholder of the Indonesian entity as reported by Bisnis Indonesia.
Gunadi’s resignation, effective 31 January 2024, follows allegations of misconduct, including the diversion of funds from Investree to his personal account and used his position to make the lending firm a guarantor for a personal company.
Investree plans to move forward with its restructuring following the infusion of new equity from investors with the aim to stabilise the company’s financial health and ensure business continuity.
In recent months, Investree has faced a liquidity crunch, despite securing a significant Series D funding round. Delays in the disbursement of these funds have raised concerns among investors regarding the company’s operational costs and revenue generation capabilities.
Investree has also been struggling with an increasing rate of bad loans, with its TKB90 rate falling below the industry standard. This measure reflects the platform’s challenges in ensuring timely loan repayments, a situation exacerbated by the global COVID-19 pandemic and inherent flaws in its credit scoring system. In response to these issues, Indonesia’s Financial Services Authority (OJK) has imposed administrative sanctions on Investree and launched an investigation into potential financial irregularities.
Kok Chuan Lim, Co-Founder and Director of Investree Singapore Pte. Ltd., expressed optimism about completing the restructuring plan swiftly, emphasising the company’s dedication to adapting its business model, enhancing risk management, and securing adequate capital.
The management of Investree has also pledged to work closely with regulatory authorities and focus on sectors that have been heavily impacted by the pandemic, including Micro, Small, and Medium Enterprises (MSMEs), as well as the garment, textile, oil and gas, and construction industries.
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