Mastercard to lead Series B funding in Indonesian fintech company Digiasia
Other details were haven’t been disclosed.
Mastercard will provide both capital and strategic assistance to Digiasia in strengthening its suite of financial services that the company claims expand the ways individuals and MSMEs can take part in the digital economy.
Digiasia’s focus is to work together with all stakeholders to increase financial inclusion in Indonesia. The firm is affiliated with several fintech companies in Indonesia with a technological framework that provides security across transactions, guards against risky lending, and allows funds to be accessed and transacted in both digital and physical ways. The companies it has affiliated with are KasPro (digital payment with electronic money), KreditPro (P2P lending) and RemitPro (remittance).
The investment comes at a time when the government and its stakeholders are focussed on driving financial inclusion. According to the Financial Services Authority, Indonesia is looking at the financial inclusion index hitting 76.19, passing the government’s target of 75 per cent for the year. With this, the digitalisation of commerce in the country could help add an additional US$150 billion to the GDP by 2025.
The company is working with a number of transport operators to allow for easy payments for services; large vendors such as iRMA and Metrodata who can offer B2B sales financed
by KreditPro; remittance companies like Western Union and Mandiri Syariah, and is digitising the supply chains of DistroPro.
In addition to Mastercard’s financial investment, Digiasia will also leverage its banking and business networks and cybersecurity expertise.
“Financial inclusion is about more than just having people transact money via apps or make online purchases. It’s about finding simple mechanisms that broaden economic opportunities so that people at all levels of society can enjoy the benefits of a modernizing digital economy,” said Safdar Khan, Division President, Southeast Asia Emerging Markets, Mastercard.
“Mastercard is deeply committed in helping Indonesia to exceed its financial inclusion goals, and hence the decision to work with Digiasia, whose suite of financial services is already making a marked difference in the everyday lives of many Indonesians,” he added.