LinkAja Strategy Towards Profitability, Focus on BUMN Market (UPDATED)

Bloody competition in the area fintech digital payments B2C made LinkAja decide to transfer his business to B2B and B2B2C since 2021. Claimed from various efficiency strategies for pivot, has borne fruit. Since June 2023 until now, LinkAja has achieved a positive EBITDA position, meaning there are only a few steps left to make a profit.

"In the last two years in a row, LinkAja has succeeded in reducing opex cost 50%, but successively increasing revenue up to 30%. "As of June, July and August [2023] we have achieved positive EBITDA for three consecutive months," explained LinkAja Chief Finance and Strategy Officer Reza Ari Wibowo to the media in Jakarta, Tuesday (19/9).

Although not stated in detail, he said that this increase in revenue was supported by various company initiatives since pivot from B2C, as follows:

• Business contributions from the five main services, respectively based on the largest contributors, are money transfer products to bank accounts, buying credit, PPOB payments, top up/withdraw balance, and management supply chain with Telkomsel (DigiPos credit agent) and Pertamina.
• The efficiency of marketing activities is down to 98%, now cashback it's almost non-existent.
• Optimization of technology and supporting infrastructure, including e-KYC, fell by around 30%.
• Laying off hundreds of employees in May 2022.

According to Reza, this increase is extraordinary because the company is no longer talking about monthly active users (MAU) and gross transaction value (GMV) as performance indicators, but rather economic units which has been shown to be real.