Financial Aggregator Product from Finture "Yup" Opens the Ease of Having a Loan Limit

The ease of accessing financial products in Indonesia is still experiencing high inequality. This challenge holds great opportunities for industry players. Quoting from the 2022 e-Conomy SEA annual report compiled by Google with Temasek and Bain & Co., digital financial services in Indonesia are predicted to maintain momentum towards 2025, reflected in the business contributions generated and high investor interest.

There are several trends revealed, the first place is occupied by the potential for non-cash payments —consisting of credit cards, debit cards, prepaid cards, electronic wallets, and transfers between accounts—recording the gross transaction value or gross transaction value (GTV) will reach $266 billion by 2022. This figure is up 13% from last year's value of $234 billion. The report predicts that by 2025 its GMV will grow 17% to $421 billion.

The second position is occupied by online loans or more familiar with buy now, pay later (BNPL) which grew 66% (yoy) or valued at $5 billion in 2022. In 2025 it is predicted that the figure will exceed $16 billion with a CAGR of 51%. These two findings indicate that there is still room for promising growth from both financial products.

This is what Finture most likely captured in preparing the product financial aggregator "Yup". The startup founded by Dong Zhang since 2021 is a financial product aggregator platform that connects users to get services paylater provided by financial institutions registered and supervised by OJK.

Under Branding Yup, Finture is working with an existing financial institution, namely SamaKita (p2p lending) and Bank Sahabat Sampoerna. Yup, the license itself is in Indonesia as a Digital Financial Innovation (IKD) which is registered at the OJK.

For loan applications, users can apply through the Yup application. After being verified and approved, a card will be sent later that can be used at merchants that provide EDC machines. Yup, provide 0% interest installments (for 40 day installments), a maximum tenor of 12 months and a maximum limit of IDR 40 million. If there is a fine, the interest is stated to be only 0,3% for bills that are past due.

So far, Yup's credit limit can only be used for offline merchant. In his social media account, it was announced that in the near future the possibility of transactions would be opened online.

The concept offered by Yup in Indonesia is not new. Previously, there was Kredivo which also cooperates with Bank Sahabat Sampoerna for card issuance Flexi Card paylater. In addition, Atome cooperates with Bank Jago for credit card issuance co-branding.

DailySocial.id had time to contact Yup to share views about its differentiation and challenges in the industry. However, until this news was released, no response was given.

Receive funding

Quoting from VentureCap Insight data, Finture has secured pre-series B funding of $15 million (more than 223 billion Rupiah). XVC was the lead investor in the round, followed by other names such as MindWorks Ventures, Antao Capital Partners, SWC Global and Tortola Capital Limited.

The reported nominal is slightly smaller than Crunchbase's record. In this series B round, Finture raised $16,5 million. The line of investors from the round, apart from those mentioned above, is a local investor, namely Sampoerna Strategic. In total, since two years of operation, the company has raised $47,5 million in external funding.