Amartha Pockets 450 Billion Rupiah Funding Led by WWB Capital Partners II and MDI Ventures

Startups p2p loans Amartha officially received funding of $28 million or around 450 billion Rupiah. The funding was led by Women's World Banking (WWB) through WWB Capital Partners II and MDI Ventures, as well as two previous investors, namely Mandiri Capital Indonesia and YOB Venture Management.

Founder & CEO of Amartha Andi Taufan Garuda Putra said this new investment will be used to strengthen the business, accelerate the development of product innovation, and introduce additional services for borrowers and lenders. Some of them are shop loans, through crowdfunding, to channeling funding directly to borrowers.

So far, the company has developed solutions for three user segments, namely channeling funding through platforms p2p loans (Amartha for Lenders), field team to process business capital loans thoroughly (Amartha for Business Partners), and other financial services other than business capital distribution (Amartha for Partners)

Amartha is WWB's first portfolio in Southeast Asia. WWB Capital Partners II is a gender lens investment founded by WWB, a global non-profit organization that has focused on women's financial inclusion for the past 40 years.

WWB Representative Yrenilsa Lopez said this investment aims to close the gender gap by entering financial service providers that focus on serving the low-income female segment. That way, Amartha can expand gender diversity in their management and take advantage of innovative solutions to reach more markets.

Previously, Amartha received funding debtworth $50 million or equivalent to 704,4 billion Rupiah last February from Lendable. Currently, Amartha noted that he had disbursed loans of Rp3,55 trillion to more than 661.369 women ultra micro entrepreneurs in more than 18.900 villages in Java, Sumatra and Sulawesi.

In addition, Amartha has also improved the quality of credit scoring with a non-performing loan (NPL) ratio of 0,07% for all funding in the period after June 2020.

Synergize with Telkom

Furthermore, CEO of MDI Ventures Donald Wihardja added that the entry of this investment will open up opportunities for synergy with the Telkom Group. This synergy is none other than digitizing and increasing financial inclusion in rural areas that have not been served by banking in Indonesia.

"We see there is promising potential to increase financial inclusiveness. We hope this investment can continue Amartha's business transformation to serve the lower pyramid community in Indonesia," he said.

Previously, Donald had mentioned that MDI Ventures had new mandate with a new managed fund of $500 million from Telkom. The mandate is none other than expanding the target of cooperation or synergy, not only with the Telkom Group but with all SOEs.

According to Donald, this new assignment was given after MDI's success in managing $100 million in funds since 2015. MDI managed to multiply fund This is not only a valuation on paper, but also in the form of liquidity in several companies exit, private as well as IPOs. He said, MDI had given Rp. 1,6 trillion synergy/revenues to the Telkom Group.