AwanTunai Gets “Debt Funding” More Than 290 Billion Rupiah from Accial Capital

Startups p2p loans CloudTunai announces funding acquisition "debt" US$20 million (over 290 billion Rupiah) led by investors debt private Accial Capital. Several other banks also entered the round as Actioncalendar.

To DailySocial, Co-Founder & CEO of AwanTunai Dino Setiawan explained, this fund was fully used to be redistributed in the form of financing for customers. The company is also currently conducting a share-based fundraising, which has yet to be announced, which will be devoted to technology development.

"The US$20 million fund was led by Accial Capital and our partnership with several banks to finance AwanTunai customers," he said yesterday (21/7).

In obtaining funding debt, companies do tend to take from institutions as Actioncalendar. Several banks that have partnered include OCBC NISP, Jtrust Bank, Credit Saison, and UOB. There are additions from other banks that are still in the process.

"Through this partnership, banks can enter the MSME segment and channel financing safely."

Accial Capital CIO Michael Shum in his official statement said, "AwanTunai has a unique approach in managing credit risk in the micro segment properly, quickly, but also responsibly. This allows thousands of micro merchants to expand their business even during the Covid-19 crisis.

CloudCash has products flagship named AwanTempo was released in April 2019. This is a financing product for grocery stores that need additional capital to buy their store needs. The company cooperates with beg to provide financing to the small shop.

Dino said that with the debt funding, it is expected to accelerate the expansion of financing for wholesale suppliers and products flagshipso that more shop owners will be helped to meet their capital needs. It is said that until now, CloudTempo has disbursed financing of up to Rp. 390 billion.

Before introducing the product, at the beginning the company was established to make loan distribution products for purchases smartphone with a maximum range of IDR 4 million. In minimizing the risk, the company recruited Blue Bird for interested taxi drivers.

“AwanTempo is now our main product. We are no longer using smartphone products," he said.

Developing new products

Dino admitted that the company was lucky enough to still be able to distribute financing during the pandemic. According to him, the grocery shop segment can still operate because during the PSBB period it will remain open to serve basic needs.

“We have a cooperation program with wholesale partners CloudCash to help the stalls that have been severely affected by Covid-19, especially those in the office area.”

For the next product development plan, Dino explained that the company is currently preparing new products to finance agricultural products for small farmers. Already partnered with foreign NGOs and partners agricultural products to channel financing from AwanTunai to farmers. The concept of financing is similar to CloudTempo. Aggregators must know the farmers to minimize the risk of default.

"The risk is very high. In many previous cases, banks entered the MSME segment. Then the NPL is very high because no data appears on the SLIK or the ID card is incorrect. That's why the problem with KUR is stuck in the banks, there is no safe way to issue KUR to the masses unbanked, " he concluded.