Expanding Market Segments, JULO Launches Health Financing Products

Startups JULO launched the Health Costs feature, a health facility financing service with a monthly installment option. It is claimed that this latest service is the first in Indonesia and can be used in more than 25 thousand health facilities in Indonesia.

In fact, this is a personal credit service that customers can use to pay bills for hospitals, clinics, dentists, pharmacies, and even medical check-up costs in laboratories.

This is the second thematic product series after previously presenting JULO Tuition Fee feature, education financing services covering more than 250.000 formal and non-formal institutions in Indonesia.

"This innovation in the Health Costs feature confirms JULO's commitment in early 2024, to reach various levels of Indonesian society with further empowerment through financial inclusion. In this way, JULO can play an active role in helping the government achieve a Healthy Indonesia, the target of social transformation in the health sector as part of Indonesia Emas 2045," said JULO Co-Founder Adrianus Hitijahubessy.

According to the Global Health Service Monitor survey, 59% of Indonesia's 278 million population have difficulty accessing health services because of high costs. In Indonesia, medical inflation reached 13,6% per year, around 4 times higher than general inflation. This makes more people vulnerable to financial difficulties when sick. As a result, it becomes increasingly difficult for them to recover financially in the long term.

JULO Head of Marketing Mikhal Anindita said, “Medical costs are often emergency and cannot wait. With the addition of the Health Costs feature to the JULO application, patients can pay for health costs quickly when needed without burdening them [...] Seeing how health is the most basic human need, the release of the latest Health Costs feature is expected to increase access to proper health for the wider community without being hampered by financial matters."

JULO business development

In the statistics presented, the JULO application has been downloaded by more than 10 million users. So far the company has disbursed more than 2 million loans with a total of IDR 17 trillion. Nevertheless, JULO still has work to do to improve loan quality -- currently they have scores of TKB90: 95,14%, TKB60: 80,08%, TKB30: 75,33%, and TKB0: 68,44%. According to the latest OJK statistics, in 2023 the average TKB90 is 97,05%.

Since its founding at the end of 2016, JULO has been supported by a number of prominent investors. Earlier this year they announced series B funding $80 million worth of Credit Saison with a combination of $30 million equity and $50 million credit facility.

Previously, JULO officially announced series A funding in September 2019 amounting to $10 million. The round was led by Quona Capital, with participation from other investors, such as Skystar Capital, East Ventures, Provident Capital, Gobi Partners, and Convergence Ventures (not yet merged into AC Ventures).

With initial products in the form of consumer financing (incl paylater), it is now claimed that 72% of JULO digital credit usage is aimed at productive purposes and improving the quality of life.

Through its business model, JULO announces earnings annual recurring revenue (ARR) of $120 million (around IDR 1,8 trillion) with revenue growth of 73% in 2023. The company also reported that its operational profit had reached break-even point.

JULO's total loan distribution throughout 2023 was recorded at $454 million or grew 50% (YoY). Meanwhile, total loan disbursement since operating in 2016 has exceeded $1 billion. Meanwhile, the retention rate per cohort JULO is 70%, which is said to have significantly contributed to savings in borrower acquisition costs and increased company operational costs.