1. Startups

Last Semester Profit Claims, Communal Receives New Funding

Series A+ funding worth 85 billion Rupiah for Komunal was led by Sumitomo Corporation Equity Asia

Fintech startup Komunal announced series A+ funding worth $5 million (around Rp. 85 billion) led by Sumitomo Corporation Equity Asia with participation from Jafco Asia, Skystar Capital, Sovereign Capital, and Gobi Partners.

Communal will encourage financial inclusion through digitalization of the People's Economic Bank (BPR), which is said to have reach hyperlocal to the local community. The company will also expand its products and services and encourage partnerships with more BPRs, especially outside Java and Bali.

"We believe that digitizing BPR is the key to increasing financial inclusion in Indonesia. We will continue to innovate to have a greater impact on Indonesian society, especially MSMEs in tier 2 and tier 3 cities which are still underserved," said Komunal Co-Founder and CEO Hendry Lieviant in his official statement.

Also conveying its business achievements, Komunal claims to have recorded profits in the third quarter and fourth quarter of 2023. Komunal was recorded as disbursing loans and deposits worth IDR 9 trillion, an increase of almost three times compared to 2022.

Through KomunalP2P, the company distributed loans of IDR 3,8 trillion to more than 1.300 MSME projects, of which 86% came from outside the Jabodetabek area. Meanwhile, through DepositoBPR by Komunal, the company distributed deposit funds worth IDR 5,2 trillion to more than 330 BPRs and BPRS in Indonesia.

Just for your information, BPR Prima Dadi Arta acquired 100% by Komunal in November 2021. This BPR is a pilot and innovation laboratory to encourage operational efficiency and integration with the Komunal ecosystem.

To date, Komunal has partnered with 376 BPRs throughout Indonesia and distributed business loans to MSMEs, the majority of which are in tier 2 and tier 3 cities. Through DepositoBPR by Komunal, the company places deposits in hundreds of BPRs digitally without face to face.

"Communal empowers BPR with a platform one-stop banking-as-a-service or BaaS which will play an important role in expanding credit availability for MSMEs, which can also unlock economic potential in tier 2 and 3 cities," said Alan Tang, representative of Sumitomo Corporation Equity Asia.

More Coverage:

Equal distribution of business loans is still one of the challenges for fintech industry players. Based on data Fintech Report 2022-1H23, total loan distribution is still concentrated on the island of Java. As of the first semester of 2023, loans disbursed in Java reached IDR 88,9 trillion, while outside Java it only reached IDR 24 trillion.

Industry players are required to increase distribution equality, including collaborating with various sectors to reach unserved segments, especially MSMEs.

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