Indonesia's KoinWorks raises $20m in debt
KoinWorks, an Indonesian financial technology start-up primarily known for P2P lending, has raised $20 million in debt by selling convertible notes to existing investors.
The buyers are Quona Capital, EV Growth, a joint venture between local conglomerate Sinar Mas and East Ventures, and Saison Capital, the venture arm of a Japanese consumer finance company. Previously, KoinWorks raised $12 million in Series B funding last year. Other investors in the start-up include Mandiri Capital Indonesia, and Convergence Ventures, according to AVCJ Research.
KoinWorks claims to be the largest P2P lending platform in Indonesia registered and supervised by the Indonesia Financial Services Authority (OJK). It brings together borrowers and lenders through a single platform that provides access to financial services, including small business development loans and education loans, for people who have not been served by traditional banking institutions.
The company also offers a machine learning-enabled solution that diverts a lender’s capital towards loans for women-led businesses, homegrown businesses and top-performing borrowers.
According to KoinWorks, the platform has more than 400,000 users, a majority of whom are millennials. Co-founder Benedicto Haryono claims that the start-up currently disburses more than IDR650 million ($47,500) in loans every month and aims to triple that figure by the end of the year. It has acquired a credit facility from Netherlands-based Triodos Bank that will underwrite future loans.
"These investments, especially during these turbulent times, show tremendous confidence in our abilities as best-in-class loan originators in the fintech space in Indonesia. We feel confident we can support Indonesia as it makes its way through an economy transformed by COVID-19,” Benedicto told The Jakarta Globe.
According to OJK, there are 161 financial technology start-ups offering lending solutions in the country. Last month, the regulator found 388 peer-to-peer lending companies operating without a license. Total outstanding loans disbursed by such start-ups exceeded IDR13 trillion ($830 million) in 2019.
Other venture-backed financial technology companies in Indonesia include Akseleran, Investree, Amartha, Modalku and Funding Societies.
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