Deepening Business in FMCG, KoinWorks Becomes IDH.ID B2B Platform Paylater Partner

Startups  KoinWorks announced a strategic partnership with the platform E-commerce B2B IDH.ID to provide Buy Now Pay Later (BNPL) product facilities to the FMCG sector.

This partnership allows shop owners (grocers) and reseller use IDH PayLater to shop for business needs online online with a due payment system.

KoinWorks via CoinPayLater and IDH.ID will facilitate loans to 380 thousand FMCG business players in stages with limit loans up to IDR 2 billion. This service is expected to significantly improve cash flow management and purchasing power of shop owners.

"KoinWorks continues to be committed to supporting the growth of the business ecosystem in Indonesia, especially in the FMCG sector which is thoroughly integrated into the sales and distribution ecosystem. "We have the opportunity to have a wider impact, both on distributors and MSME shop owners," said KoinWorks Co-Founder & CEO Benedicto Haryono.

For KoinWorks, this collaboration also expands the reach of using KoinPaylater to the FMCG sector this year. KoinPayLater is a financing product for MSMEs that has been launched since 2022. Meanwhile, KoinWorks has distributed total loans in 2024 of more than IDR 1,9 trillion and its users have reached 2,5 million.

For information, IDH.ID, under PT Indonesia Distribution Hub, is a platform E-commerce for distribution of FMCG products. IDH.ID has previously collaborated with Amerta Indah Otsuka, a multinational company engaged in the development and production of FMCG products.

IDH is recorded as having more than 380 thousand registered active stores and 48.000 SKUs sold from 320+ principals and 170+ distributors in 232 cities in Indonesia.

IDH.ID CEO Jack Ng added that the company is trying to improve services and more flexible payment options to meet growing market needs. "Collaboration with KoinWorks as our first partner for paylater also reflects a shared commitment to expanding financial services to MSMEs at the local level."

So far, IDH.ID has distributors throughout Indonesia and supplies all customers in Java, Bali, Sumatra, Kalimantan and Sulawesi. He believes that digitalization in the FMCG sector can encourage productivity and efficiency for customers.

FMCG is a sector where many products are supplied and sold by stall or traditional shop business owners. However, many of these segments are still untouched by financial access, especially by banks, due to risk and collateral aspects.

It is known that currently only around 27% of the more than 60 million MSMEs in Indonesia have access to loans. This challenge is also what other fintech lending startups which focus on the MSME and FMCG areas are trying to overcome. CloudCash is one of the players that offers financial solutions for MSMEs and FMCG suppliers.

AwanTunai's supplier financing product has a loan limit of up to IDR 2 billion with varying tenors, starting from 7 days, 14 days and 30 days.

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Update 17.21: DailySocial.id updated the article in the sixth paragraph according to input from KoinWorks.