Two KoinWorks Business Units Reveal Profitable

KoinWorks Group announced the profitability status achieved by its two business units, namely BPR KoinWorks Sejahtera Annua (KoinWorks Bank) and Lunaria Annua Teknologi (LAT). The group will build on these achievements to achieve group profitability by the end of this year.

“With KoinWorks Bank and LAT reporting profitable results, we have validated our strategic focus on sustainable growth. This achievement confirms our dedication to delivering value to stakeholders. "We are also closer to our goal of achieving group profitability by the end of 2024," he said Benedict Haryono as CEO and Co-Founder of KoinWorks and owner of KoinWorks Bank in an official statement, yesterday (17/4).

Following are details of the achievements of the two KoinWorks Group businesses:

1. KoinWorks BPR

The reported initial profitability is a direct result of a well-diversified MSME customer portfolio with a maintainable NPL level of 0,5%. This then results from lower funding costs on term deposit products.

Founder of KoinWorks acquired BPR Asri Cikupa Karya in January 2023, then operating under the legal name KoinWorks Bank since October 2023. This strategic acquisition provides KoinWorks users with a Term Deposit product option with a competitive rate of return guaranteed by the Deposit Insurance Corporation (LPS).

Since the acquisition, KoinWorks Group has injected capital to transform KoinWorks Bank into a digital platform for businesses and consumers. The launch is planned to take place next year.

2. PT LAT

PT LAT or better known as p2p loans CoinWorks reports profit in full year 2023, after substantial investments in product development and automation backend. LAT has succeeded in developing its MSME credit portfolio, by disbursing productive loans of more than IDR 10 trillion throughout 2023.

As a result of product development, KoinWorks indicated that the company was able to automate processes that were previously managed by third-party software integration. This automation increases a company's overall cost efficiency. Concretely, this also contributes to a 25% increase in EBITDA by 2023, and a 65% increase in margins over the same period.

Recently, KoinWorks has become more serious about paylater products for supplier partners in FMCG. The latest partnership announced is with IDH.ID which allows shop owners and reseller use IDH Paylater, powered by KoinWorks, to shop for business needs online with a due payment system.

Ben, Benedicto's nickname, continues to achieve profitability in 2024, which is not only an important milestone for KoinWorks Group, but also strengthens its ability to fulfill commitments to its stakeholders. This success reflects the company's ability to implement change strategies effectively.

"Meanwhile, LAT's achievement in achieving full year profitability in 2023 confirms our commitment to innovation and efficiency in serving MSMEs. "By maintaining a focus on impact in serving MSMEs, funders and all users, KoinWorks ensures that the profitability obtained can provide more impact and meaningful support for all users," he concluded.

Apart from the two legal entities above, KoinWorks also operates applications superfinancial which is operated by PT Sejahtera Lunaria Annua.