Investree Gets US$7M Lifeline from SBI Holdings, Earmarks Majority for Salaries

Investree Gets US$7M Lifeline from SBI Holdings, Earmarks Majority for Salaries

by February 6, 2024

Beleaguered Indonesian peer-to-peer (P2P) lender Investree has reportedly secured a critical US$7 million rescue package from its existing investor SBI Holdings, according to DealStreetAsia.

Investree has earmarked US$4.5 million of this package for employee salaries, which encompasses owed salaries, benefits, taxes, payables, and other related expenses.

An additional US$1.15 million is allocated for legal and audit fees, US$750,000 is designated for retrenchment costs, US$500,000 for credit insurance and collections expenses, and US$100,000 for rent.

The need for such a rescue package comes in the wake of the departure of Investree’s high-profile CEO, Adrian Gunadi, following allegations of misconduct.

Gunadi was alleged to have diverted funds from Investree to his personal account and used his position to make the lending firm a guarantor for a personal company.

Kok Chuan Lim, Co-founder and a director at Investree Singapore, had previously shared that the company’ intended to swiftly complete a major restructuring plan, which includes seeking an injection of new equity from investors.

Lim also announced the severance of ties with PT Putra Radhika Investama, PT Radhika Persada Utama, and any entities claiming affiliation with Investree. Gunadi is said to have ties to both PT Putra Radhika Investama and PT Radhika Persada Utama.

The backdrop to these developments includes a challenging period for Investree, marked by liquidity issues despite securing a substantial Series D funding round led by Qatar’s JTA International Holdings.

The delay in fund disbursement from this round has exacerbated the company’s financial challenges, raising concerns about its ability to cover operational costs and generate revenue.

Moreover, Investree has faced scrutiny over its handling of bad loans, with its TKB90 success rate falling significantly below the industry average, prompting lawsuits from lenders and investigations by authorities.

The OJK’s involvement, through the imposition of administrative sanctions and an ongoing investigation into Investree’s operations, adds a layer of regulatory complexity to the company’s restructuring efforts.

These probes are focused on Investree’s revenue generation capabilities, the allegations against its former CEO, and the company’s affiliations with other firms.