Author: Fintech News Indonesia

wagely, an Indonesian earned wage access (EWA) firm, has raised US$23 million in a funding round comprising both equity and debt financing. The round was led by Capria Ventures with contributions from existing investors and a private debt fund. The platform offers a practical solution for workers in Indonesia and Bangladesh to manage their finances more effectively by allowing access to earned wages after each workday. wagely’s service is provided at no cost to employers, who in turn offer it as an optional benefit to their employees. It also allows users to track their salary and access financial literacy resources. In…

B2B embedded finance startup Fairbanc has secured US$13.3 million in debt financing from digital lending arm of Pegadaian, a subsidiary of Bank Rakyat Indonesia. According to DealStreetAsia, Fairbanc aims to utilise the newly acquired funds to broaden its operations in Indonesia, focusing on off-balance sheet financing via its newly introduced Buy Now, Pay Later (BNPL) gateway. Fairbanc leverages the supply chain data of FMCG distributors to automate credit scoring and risk monitoring, thereby extending essential working capital to its clients. The startup, which initially collaborated with Unilever in Bangladesh before expanding to Indonesia in 2021, offers MSMEs the opportunity to…

JULO, an Indonesian fintech offering digital peer-to-peer lending, has announced it reached an annual recurring revenue surpassing US$120 million in 2023. The company also reported a 50% increase in its loan disbursement volume for the year, alongside achieving operational profitability by December 2023. Supported by AC Ventures, Credit Saison, Quona Capital, and Saratoga, JULO aims to make financial services more accessible in Indonesia. JULO’s credit underwriting process, which uses comprehensive behavioral data, has enabled the successful launch of virtual credit card products designed for the middle-income demographic in Indonesia. In 2023, JULO saw a 73% rise in its revenue and…

Singaporean tech conglomerate Sea Group is reportedly poised to acquire a minority stake in HiBank, a subsidiary of PT Bank Negara Indonesia Tbk (BNI). Royke Tumilaar, BNI’s president director had confirmed this development. BNI, a state-owned entity and the controlling shareholder of HiBank, aims to maintain its majority stake post-transaction, indicating a strategic alliance rather than a takeover. According to DealStreetAsia, Sea Group is negotiating to buy a 10-15% stake in HiBank Indonesia and the transaction expected to conclude as early as the next quarter. The backdrop to this deal is HiBank’s rebranding journey, transitioning from PT Bank Mayora following its…

The Indonesian Financial Services Authority (OJK) is closely monitoring Investree, a fintech peer-to-peer lending platform, following public reports of potential operational and consumer protection violations. The regulator is conducting an in-depth investigation through direct examinations of Investree, responding to recent concerns raised by the public. If violations are proven, the OJK said that it will take necessary actions, potentially collaborating with law enforcement officials. While encouraging Investree to operate responsibly, the OJK urged the public to remain cautious and informed regarding these issues. This announcement follows recent financial challenges faced by Investree, including allegations of misconduct against its former CEO…

Fintech investment platform Helicap and Bank Danamon have partnered to to support the fintech industry in Indonesia. Both entities aim to provide comprehensive growth capital solutions to fintech and alternative lending firms as well as micro, small, and medium-sized enterprises (MSMEs) across various industries including supply chain, leasing, and e-commerce. The partnership will create a robust funding ecosystem by combining Danamon’s vast banking network, which includes over IDR 221 trillion in consolidated assets, with Helicap’s experience in diversified debt portfolio management and advanced data analytics. This ecosystem will support non-bank firms throughout their development, from initial funding phases to potential…

B2B e-commerce marketplace Ula is reportedly on the verge of shutting down its Indonesian office. The news comes after the company experienced a period of “hibernation” in recent months, with its office closure anticipated by the end of this month, according to insights shared with DealStreetAsia by multiple sources familiar with the matter. Founded in 2019 by CEO Nipun Mehra, Ula has raised over US$141 million since inception. Most notably, the firm had raised US$87 million in a Series B funding round co-led by Prosus Ventures, Tencent and B-Capital in October 2021. Amazon founder Jeff Bezos had also joined the…

Indonesia’s GoTo Group, a ride-hailing service in Southeast Asia, denied reports that it is discussing a merger with Grab Holdings, another major player in the region. This announcement comes after speculation that the two companies were considering a deal, potentially involving cash, stock, or a mix of both, to unite their operations. The speculation gained traction following suggestions that GoTo might be more amenable to such discussions under the leadership of its new CEO, Patrick Walujo, who took the helm last year. However, GoTo’s clarification puts an end to the rumors of a potential merger with Singapore-based Grab. GoTo said…

SME digital financing platform Modalku’s Co-Founder Iwan Kurniawan announced that he will be officially stepping down from his leadership role after nearly eight years. Iwan, who spearheaded the company from its inception in 2015 until June 2023, transitioned out of his role following a meticulously planned year, continuing as a board member and advisor until October last year. He said in a LinkedIn post, “I have utmost gratefulness for Kelvin Teo, Reynold Wijaya, the rest of the management and over 1,400+ FSMK [Funding Societies | Modalku] leaders & team members (past & present), fellow board members, investors, mentors and the…

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…

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…

Indonesian lender Investree’s co-founder and CEO Adrian A Gunadi has tendered his resignation, effective 31 January 2024. This move comes amid allegations of misconduct and various challenges faced by the company, as reported by DealStreetAsia. Gunadi’s resignation letter, a copy of which DealStreetAsia has accessed, confirms the irrevocability of his decision and states that he has no further claims against the company. In a separate document reviewed by DealStreetAsia, Gunadi had reportedly admitted 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. Earlier, DealStreetAsia…

Indonesia’s cryptocurrency market, previously known for its rapid adoption rates, experienced a significant downturn last year, as trading volumes on local crypto exchanges plummeted by 60% compared to the previous year. Industry experts suggest that stringent tax policies are partly to blame for this decline. In the Indonesian market, cryptocurrencies are categorised as commodities, making them subject to both income tax and value-added tax (VAT). This dual taxation has led to a situation where the cumulative tax burden on crypto transactions often surpasses the trading fees charged by the exchanges themselves. This heavy taxation is considered a deterrent for traders…

Indonesian venture capital firm East Ventures’ Koh Wai Kit, who had been serving as the Managing Partner since his appointment in 2021, has stepped down from his role. This was confirmed by sources close to DealStreetAsia. Prior to his tenure at East Ventures, Kit was deeply involved in the venture capital sector, holding the position of CEO at a licensed fund management platform. He also played a foundational role at Pavilion Capital, a private equity firm backed by Temasek, leading investments across various Asian markets and in several notable tech unicorns including Gojek, Didi, and Xiaohongshu. Prior to this, Operating…

Thailand-based Roojai Group announced the acquisition of Lifepal, an Indonesian digital direct-to-consumer (D2C) insurance marketplace, according to a report by TechNode Global. Lifepal was founded in 2019 by former Lazada executives Giacomo Ficari and Nicolo Robba, to offer over 300 policies across health, life, automotive, property, and travel. The firm had raised an oversubscribed US$9 million Series A funding round in August 2021, bringing the total capital raised to US$12 million. Lifepal, which reportedly has over 2 million unique monthly visitors, represents a strategic expansion for Roojai in the Indonesian market. The acquisition is seen as a synergy between Roojai’s…

Oona Insurance, a digital general insurance platform in Southeast Asia set up by Warburg Pincus, announced the appointment of Vincent C. Soegianto as the new CEO for its operations in Indonesia. A veteran in the financial services industry, Soegianto, is currently undergoing a Fit and Proper Fest (FPT) process at Indonesia’s Financial Services Authority (OJK). His appointment will be finalised upon approval by Oona’s shareholders’ meeting and the OJK. With 29 years of experience in the financial services sector, Soegianto has held significant roles across Asia Pacific and the Middle East, including in Indonesia, Malaysia, Hong Kong, and Dubai. His…

Indonesian agritech startup Semaai has secured US$4.7 million in a pre-series A funding round led by CyberAgent Capital, bringing its total funds raised to US$ 7.6 million. The raise was also joined by Sumitomo Corporation Equity Asia, Ruvento, MyAsiaVC, and Heracles Ventures. With the newly acquired funds, Semaai plans to forge collaborations with fintech institutions, focusing on advanced financial solutions to support the agricultural community. Additionally, the startup plans to expand its footprint in Central Java, targeting coverage of 75% of the region’s villages by the end of 2024. Semaai also intends to enhance its agronomy advisory services, which provide…

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…

JULO, an Indonesian fintech offering digital peer-to-peer lending, announced that it has launched ‘JULO Cares’, an embedded insurance coverage. This new offering, backed by global general insurer Sompo, provides device protection for users availing of JULO’s digital credit services. Throughout 2023, JULO has focused on launching new products aimed at supporting Indonesia’s underbanked and unbanked populations. These initiatives include JULO Turbo, which reportedly delivers instant credit in five minutes, and JULO Education, which provides education financing across any school, any college and any online course in Indonesia. Nimish Dwivedi, Chief Business Officer of JULO Group said, “We aim to add…

Payment giant Mastercard has partnered with PT MRT Jakarta (Perseroda) to provide more payment options to commuters for cashless transit experiences. This announcement coincides with the renaming of Senayan Station to Senayan Mastercard Station. Travelers can now top up their MRT cards using Mastercard debit cards at station counters. Additionally, for the first time, Mastercard credit cards are now accepted for ticket purchases through the MyMRTJ app. MRT Jakarta has experienced a huge increase in ridership, reaching an average of 100,000 passengers daily by September 2023. The number of passengers is expected to grow further with the expansion of the MRT…