Djoin Receives Seed Funding from 500 Global to Digitalize Microfinance Institutions

Djoin, startup fintech based in Bali, announced seed funding from 500 Global. This investment will allow Djoin to accelerate its marketing strategy, expand its team to support increasing demand, and expand its lending platform capabilities to new regions in Indonesia.

Previously, in mid-2022, Djoin also announced its acquisition funding angel round from undisclosed investors.

Co-founder & CEO Djoin Indra Adhi Suputra stated, “The majority of people know Bali because of its tourism; the collapse of this industry during the COVID-19 pandemic pushed a generation technopreneur new locales and the emergence of a dynamic innovation ecosystem. By empowering microfinance institutions with technology that improves their operational efficiency and effectiveness, we hope to build stronger and more resilient communities in Indonesia.”

More than 50% of Indonesian people do not have full or no access to banking services, so they are very dependent on microfinance institutions, especially savings and loan cooperatives. Unlike conventional banks that serve customers in big cities, savings and loan cooperatives reach rural and remote areas serving half of the country's population.

Digital transformation of microfinance institutions

Djoin provides a comprehensive banking platform to meet the needs of microfinance institutions such as cooperatives and underserved communities. Their services include SaaS banking systems, credit decision engines, and loan disbursement products. Djoin's data-based interface is considered to be able to increase operational efficiency, optimize loan management, reduce problem loans, and promote financial stability.

This innovation enables microfinance institutions to offer financing to underserved communities at lower interest rates, helping close the $140 billion financing gap and driving sustainable and inclusive economic growth.

A number of startups are also taking part in this market with the following approach fintech enablers or SaaS. In the cooperative market, for example, there is Kodi, Kuelap, and Cashcoop by Finnet which provide business process digitization platforms. Meanwhile, in other small financial institutions, there is Communal which focuses on digitizing banking services at BPR.

Djoin's strategic role

In 2023, Djoin will facilitate loan distribution of more than IDR 700 billion (~$35 million). This team succeeded in acquiring more than 80 microfinance institution clients in Bali, East Java and East Nusa Tenggara, and succeeded in reducing their average non-performing loans by 52% from 2022 to 2023.

500 Global Managing Partner Khailee Ng added, “To include all of Indonesia in a growing economy, we need to use technology. Credit unions already serve many unbanked communities, using Djoin to help them expand could enable even more for the country.”

Djoin is led by I Wayan Indra Adhi Suputra, Farzikha Soerono, and I Putu Takumi Wijaya who have more than 30 years of experience in the cooperative, financial and technology industries. Their mission is in line with Mohammad Hatta's vision of cooperatives as a cornerstone of the Pancasila-based economy in Indonesia, with a commitment to providing quality loans and improving cooperative classes.

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Disclosure: This article was produced with AI technology and supervision of the content writer