East Ventures Leads Pre-Initial Funding of 82 Billion Rupiah Proptech Startup “Tanaku”

Startups proptechmy tan announced the acquisition of fresh funding of $5,5 million (over 82 billion Rupiah) in a pre-start round led by East Ventures. This round includes equity and debt capital, with nominal not specified, from leading international banks.

This new capital will be leveraged by Tanaku to deliver accessible home ownership and radically transform the home buying experience, with the current focus on building products, expanding teams, acquiring homes and executing strategies. to market .

"We really appreciate East Ventures' investment and trust in our vision to bridge the home ownership gap and promote financial inclusion in Indonesia," said Tanaku Co-founder & CEO Jonathan Ma in an official statement, Tuesday (12/7).

Jonathan, along with his colleagues, namely Andries De Vos (Head of Product), Bhanu Prakash (Head of Marketing), and Alwin Hajaning (Head of Commercial), started Tanaku this year with various backgrounds, ranging from property, finance, law, product, and growth.

The complex problems in this area have also challenged a number of other startups to provide similar solutions for financing property ownership --- of course with unique business models, including concise and Pinhome.

Tanaku's Solution

Since 2020, home ownership in Indonesia has continued to decline by 2% per year. As many as 70 million young people are the most affected segment with 70% of them unable to buy their own house.

The problem stems from how to buy a house, many young people do not have sufficient funds or savings to be used as an initial down payment (DP) and banks will reject the majority of mortgage applications. Property developers often offer installment plans, but often there are expensive hidden fees, high interest rates, and difficult requirements to meet.

These conditions frustrated them and turned to long-term property rentals which led to a steady decline in home ownership.

Jonathan said, Tanaku built a pre-mortgage solution to own a residence. Tanaku will build a technology platform end-to-end unique to facilitate home purchases and transactions online online to accommodate various startup proptech in Indonesia.

“Our mission is to reverse the decline in home ownership in Indonesia and realize the dream of owning a home. In the long term, we want to encourage Indonesia's transition to green housing.”

Potential homebuyers can prequalify with Tanaku on much simpler terms than traditional banks. They just pay 2% down payment and can live in a new house. Then, they can focus on paying off the remaining down payment in monthly installments and renewing their house with Tanaku or accessing a bank loan on much better terms, thanks to the credit history they have accumulated.

At the initial launch, potential homebuyers can select a home from Tanaku's list of preferred properties via the site. In the future, Tanaku will facilitate the purchase of houses on the open market with various partner agents in several cities in Indonesia.

“We believe in the ambition and expertise of the Tanaku team in providing alternative home financing solutions to help millions of Indonesians become financially responsible homeowners. We are excited to be a part of the Tanaku team's journey to welcome the new era of home ownership in Indonesia," said East Ventures Principal Devina Halim.