Caxe Achieves Profit in First Month Since Focusing on B2B Digital Financial Solutions

Population unbanked and underbanked in Indonesia is still the highest (81%) in Southeast Asia, according to the eConomy 2022 report. This figure shows that it is still difficult for Indonesians to access financial products. Solving this challenge must be done from various angles, not only for retail, it is also necessary for companies to adopt digital financial solutions.

Companies that need financial solutions are much larger and no less important than retail in order to increase financial inclusion. It's just that for companies the process is not easy, considering this industry heavily regulated, especially financial institutions.

The prospect is very green and healthy because this B2B segment does not have to use strategy burn money. Armed with this hypothesis, Caxe Technologies/Caxe (rebrand from C88 Financial Technologies) is interested in working on the B2B segment in 2019.

Marked by C88 acquisition action against IDX Optus. IDX Optus CEO Anton Hariyanto was appointed CEO of Caxe Technologies, replacing JP Ellis, previous CEO of C88.

IDX Optus is a provider of solutions in the field of analytics and information management, including cognitive and predictive analysis, artificial intelligence, machine learning, data management and visualization, data integration to decision support and credit risk management.

This group of companies has been established since 2006 with two businesses, id/x partners and Optus Solutions. Clients are corporations from multi-industry, such as banking, fintech, insurance, telecommunications, retail and government agencies.

For starters, before rebrand so Caxe, C88 is the parent of two financial product marketplace platforms, namely CekAja (Indonesia) and eComparemo (Philippines) which have completely played in the B2C area since the first time coming in 2013. Just check Sold to Amalan International Pte. Ltd. The announcement was made on April 6 2022. Likewise, eComparemo is sold by a local entity, SnapCompare Corporation.

Before fully focusing on B2B, Caxe carrying out various rationalization steps, including redefining business strategies, considering that in 2020-2021 the Covid-19 pandemic occurred. The resulting decision was to sell the B2C line in 2022 to reduce the impact of 'coughing' during the pandemic.

This impact was felt from Caxe's operational side because at that time the client reduced its budget. Nevertheless, Anton said the team continued to grow during that time because the business continued to grow.

“Caxe will only become profitable in 2021 because the B2C [loss] portion is shrinking. Then in 2022, profits will increase after B2C is sold. Because nature marketplace This financial product is B2C, until we sell [CekAja and eComparemo] in 2022 not yet make profit," explained Caxe Technologies CEO Anton Hariyanto to DailySocial.id.

Anton admitted that with the strength of IDX Optus, which only plays in the B2B area, it was able to bring a healthy position to Caxe. With a profit mindset, the company is able to maintain topline growth revenue which is consistently between 50%-70% yoy with a nominal value of more than $10 million per year.

The number of clients is said to reach more than 50 companies from the financial industry, including banks, insurance, p2p lending and multi-finance. “top five "Those from each financial industry have become our clients," he added.

Profit growth is considered to be in line with growth revenue. With the profits that have been achieved, Caxe is even able to support its own operations (self-sustaining) and investing in innovation centers for product development and innovation. However, the company still needs strategic investors for business synergy needs.

Caxe Products

Currently Caxe has one flagship product, iDecision, which targets two solutions at once: digital lending and regtech. This product targets financial institutions as its main target users.

"We chose this area because in the next 10-20 years it is an area that will always be used. Data, machine learning, artificial intelligence, automation and regulation will not die and are always evolving. We also need innovation so that clients can continue to grow, support from growth revenue us.”

Solution digital lending what Caxe presents is considered different from most fintech players because the solution is from upstream to downstream. It means from the process when applying for a loan, risk assessment, loan approval, appropriate ceiling, until billing is processed through the system. This solution utilizes automation, AI, ML, and optimizes the use of data so that all loan decisions occur instantly and with minimal human intervention.

It is claimed that Caxe is able to help automate 90% of the digital loan flow where the final decision is taken from the system. The duration required is only one minute for the loan to be given after the application is made. Millions of successful transactions are processed every month.

Previously, the credit application process in industry was very conventional because it used paper and the analysis was also manual. The time spent is at least one week. "With our system, financial institutions can move forward from conventional to digital because they use the system to make their decisions."

As for solutions regtech is a new industry that applies modern technology, including AI and ML to overcome regulatory challenges, especially in the financial services sector. Usually the company uses it regtech it focuses on regulatory monitoring, reporting and compliance in the financial sector, including efforts to prevent money laundering and fraud.

“In the current era there is a tendency towards fraud and money laundering which is increasingly common. In order to fulfill compliance with OJK and PPATK, we are expanding into areas regtech. "

This iDecision can be personalized according to the company's needs, including its maturity in adopting digital technology. Can be accessed as SaaS or installed into data center client's. "We are very flexible and can meet all types of needs and maturity of clients."

Anton revealed the solution regtech This is of great interest to financial institutions because it is closely related to and plays an important role in their industry. Contribution revenueit reaches 60% and the rest is from the solution digital lending.

To continue to answer industry needs, Caxe continues to innovate utilizing modern technology. In the near future we will release an automation solution machine learning which allows optimization of loan decisions to be taken based on borrower characteristics, also referring to credit assessments that are regularly updated so that risk is always maintained.

“The innovation will utilize AI and ML so that decision making can be optimal. Take as much data as possible for analysis so that the results are more precise."

So far Caxe is still operating in Indonesia only. Plans to expand to Southeast Asia will be carried out for at least the next three years. In total, team personnel reached 250 people.

Tips for new founders

Anton said, learning from his experience, currently startups no longer refer to growth revenue only but the aspect of how you can make a profit. For this reason, founders must know the road map to profitability that is supported by solutions that the market really needs.

“What I see now are startups fundraising, but the solution is a bit far-fetched. That does not sustain in the future. You need to really pay attention to the product fit di market for the long term and path to the profit must be clear. And it better be in market sufficient niche not network ocean there are so many players," he concluded.