Indonesia fintech startup AwanTunai has raised US$4.3 million in a Series A round led by Insignia Venture Partners & AMTD Group. Participating investors include Global Brains, Fenox Venture Capital, and other affiliates.
There are currently over 100 million Indonesians who do not have access to banking products. What AwanTunai does is provide banks and financial institutions with a platform to reach this underserved market segment.
The startup claims that it is able to lower the cost of the entire loan origination process through digital automation.
AwanTunai offers mobile-based consumer credit to consumers and enables micro-retail merchants to accept payments from this consumer financing system. By giving consumers greater purchasing power, merchants can expect sales to increase.
AwanTunai also allows these merchants to acquire working capital easily.
“We recognize that Fintech’s strength is to help existing financial institutions gain wider distribution into underserved markets and lower origination costs. We hope to enable Indonesia’s banks to provide the whole country access to affordable high-quality credit services,” said Setiawan, CEO of AwanTunai, in an official press release.
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Currently, the company provides working capital to a variety of micro-merchant including grocery stores, motorcycle repair garages, electronic retailers, and pharmacies.
As of October 2018, AwanTunai has served 300,000 loan applications. By the end of this year, AwanTunai aims to provide working capital loans to 5,000 micro-merchants.
“We firmly believe the future of financial services lies with digital banks. Our investment in AwanTunai reflects their ability to be an enabler of incumbent banks to adopt the technologies necessary to deploy digital banking products,” said Yinglan Tan, Managing Partner Insignia Ventures Partners.
Image Credit: AwanTunai