Here's How LinkAja Accelerates Significant Growth Through New Two-Sided Business Strategy

Today, significant growth for tech start-ups of any scale is essential. Challenges stemming from the macroeconomic situation have encouraged technology entities to not only grow significantly, but also to accelerate profitability, which is expected to continue to prioritize solid fundamentals. There are many ways to achieve this, one of which is by creating continuity in a solid collaboration.

As recently done by LinkAja, this fintech from Indonesia is targeting rapid growth by sharpen the strategy and strengthen its steps in building a comprehensive digital financial solution for the ecosystem of SOEs in Indonesia. This will be realized by presenting LinkAja's new business strategy which will focus on a two-sided business model (two-sided business model), a financial solution for Indonesian consumers, also provides financial solutions end-to-end for supply chain (supply chains) both digital and traditional under the auspices of SOEs, through payment services, loans and other digital services. This step is believed to have a more significant impact in accelerating Indonesia's financial inclusion and uniting the various potentials that exist in Indonesia's vast SOE ecosystem. 

Quoted from report fintech 2021 company fintech in Indonesia has contributed 41.9% to digital economic transactions in ASEAN. More specifically, data Bank Indonesia shows that until August 2021, the number of e-money transactions has reached IDR 25 trillion. Judging from the data, this figure increased by 41 percent from IDR 17 trillion in August 2020.

Digitalization in the SOE Ecosystem Is a Way for LinkAja to Continue to Excellence

With the growth of the domestic digital economy, it has also had a considerable impact on LinkAja to be more superior, since it was founded in 2019, LinkAja's journey has increased 15 times more with more than 82 million registered users. Of course, with this success, LinkAja has succeeded in attracting Southeast Asian investors with their presence and awareness platformher as the champion fintech in Indonesia. This is in line with the current situation and conditions in the world technology industry. In times of global macroeconomic challenges, profitable technology companies are essential to strengthen the company's fundamentals in terms of capital and the like.

To strengthen the digital service ecosystem for strategic partners, LinkAja created a supply chain system to support these needs. According to LinkAja CEO Yogi Rizkian Bahar, this aims to realize economic units good with improvement customer lifetime value which leads to path to profitability which is clearer. 

"Then by becoming a liaison between merchants and customers, LinkAja not only facilitates transaction activities, but also allows principals to find out more about their merchants, for example KYC and their financial capabilities. This will allow LinkAja to expand its service facilities in the form of financing ," he said.

In expanding the line of business to payments online, the financing services planned by LinkAja are realized first in the business supply chain ecosystem such as Digipos (Telkomsel), MSME actors or business actors under the auspices of the SRC (Sampoerna Retail Community), and also spread to other SOE business supply chains.

Through this strategy, LinkAja provides efficient services to make it easier for users to pay various types of bills such as postpaid electricity bills, prepaid electricity tokens, internet, PDAM, to pay for fuel and LPG through Pertamina. Of course, this convenience is also bridged by the presence of QRIS which was initiated by Bank Indonesia since 2020. 

To enlarge its ecosystem, LinkAja also collaborates with other SOE ecosystems, one of which is PT Semen Indonesia Group (SIG), this collaboration is also a strategy to introduce digital wallets and reach more levels of society throughout Indonesia. 

Of course, as one platform Electronic finance in the widening opportunity for digitalization has made LinkAja determined to continue to collaborate and innovate in helping business actors, especially in the SOE ecosystem, to be able to take advantage of digital connectivity and in the future LinkAja will reach out to other SOE ecosystems.

Meanwhile, for now cash-in cash-out (CICO) LinkAja has reached 1,3 million and has also successfully received strategic investment from Gojek and Grab. 

Increasing Financial Inclusion Through Collaboration and Investment

Different from the company e-wallet On the other hand, LinkAja is not only focused on consumers but also provides financial solutions to meet the needs of the ecosystem merchant to facilitate the daily transaction needs of service users.

"We see the need to sharpen LinkAja's new business strategy which will focus on a two-sided business model" (two-sided business model), namely not only providing financial solution services for Indonesian consumers, but also providing financial solutions end-to-end for supply chain (supply chains) both digital and traditional, especially those in the SOE ecosystem," added Yogi

Therefore, LinkAja intends to collaborate with other State-Owned Enterprises to provide services e-wallet. This is done to achieve one goal, namely to become a national electronic money that can support the government to increase financial and economic inclusion through easy access to digital financial services to all levels of Indonesian society.

Through a complete and integrated ecosystem of electronic financial transaction services, LinkAja's consistency and commitment in its efforts to #SatukanPotensiIndonesia is increasingly being realized. By optimizing all services that are featured by each SOE that is a shareholder, LinkAja is optimistic that it can meet the needs of safe and comfortable digital transactions, and further accelerate the process of equitable financial inclusion in Indonesia.

To carry out this goal since early 2021, LinkAja has collaborated with PT Bank Syariah Indonesia Tbk (BRIS) or BSI to develop sharia-based electronic money in Indonesia. Later in the same year, LinkAja also acquired iGrow (startup P2P lending for the agricultural sector).

Sector Development e-wallet in Indonesia

In recent years the digital wallet sector (e-wallet) has produced quite a fantastic transaction value. In report fintech 2021, e-wallet leads the most used fintech subsector, holding 53.7%. Its practicality for consumers' daily use such as money transfers, top-ups, to payments E-commerce This is the main reason why this sub-sector can beat other sub-sectors such as Paylater, P2P Lending, to investment. Data as of September 2021 also shows the volume of this electronic money transaction reached 470 million with total value IDR 27,6 trillion.

It is known that now apart from acquiring iGrow, LinkAja also continues to expand its market reach by working on sharia services. As is known, in April 2020, LinkAja already has LinkAja Syariah, the first sharia-based electronic money service in Indonesia that has received certification from the MUI. 

The last few years the digital wallet (e-wallet) sector has produced quite a fantastic transaction value. In 2021 fintech report, e-wallet leads the most used fintech subsector, holding 53.7%. Its practicality for consumers' daily use such as money transfers, top-ups, and e-commerce payments is the main reason this subsector can beat other sub-sectors such as PayLater, P2P Lending, to investment. Data as of September 2021 also shows that the volume of electronic money transactions reached 470 million with a total value of IDR 27,6 trillion.

Still from the same report, e-wallet is one of the fintech products that are still being considered for use in the future, because if you look at the huge growth and potential of the e-wallet market in Indonesia, many players are trying to compete by presenting various strategies and innovations. . It is known that in addition to acquiring iGrow, LinkAja, which also has an e-wallet label from Bank Indonesia and an e-retailer from the Investment Coordinating Board (BPKM), will expand its market reach by working on sharia services. It is very interesting to look forward to the next development of LinkAja in the future.