Fazz Establishes Multifinance Subsidiary "Fazz Finance"

Startup group fintechFazz established a subsidiary in the financing sector, PT Fazz Capital Finance. This establishment has obtained a business permit from the Financial Services Authority (OJK) which was issued on February 22 2024.

"In accordance with the provisions of Article 14 of the Financial Services Authority Regulation Number 47/POJK.05/2020 concerning Business and Institutional Licensing of Finance Companies and Sharia Financing Companies, PT Fazz Capital Finance is required to carry out business activities no later than 3 (three) months from the date of the permit business is determined," wrote OJK quoted from its official website, Thursday (21/3).

DailySocial.id Tried to contact Fazz management for information, but until this news was published no response had been given.

It could be said that establishing a financing company provides flexibility in channeling financing because the limit is greater than that of the players lending, namely a maximum of IDR 2 billion for each loan. Meanwhile, the sources of funds and financing structures are also different. Finance companies have more alternatives to find sources of funds, either through banking or issuing debt securities.

This step is actually also taken by other startup players who acquire/establish financing companies. Some of them are:

1. Gojek (PT Multifinance Anak Bangsa),
2. Traveloka (PT Caturnusa Sejahtera Finance),
3. Shopee (PT Commerce Finance),
4. Kredivo (PT Kredivo Finance Indonesia),
5. Xendit (PT Globalindo Multi Finance),
6. Akulaku (PT Akulaku Finance Indonesia),
7. Atome (PT Atome Finance Indonesia),
8. Modalku (PT Modalku Financial Indonesia),
9. Honest (PT Friends of Family Finance),
10. Moladin (PT Moladin Finance Indonesia),
11. Carro (PT Sembrani Finance Indonesia).

Almost all of the agreements above were carried out inorganically, namely the acquisition of pre-existing companies.

Fazz Finance is led by Anton Tjen as President Director, previously Anton served as Chief Sales Officer at Modal Rakyat, a subsidiary of Fazz in the p2p lending sector. He was accompanied by two other directors, namely M. Noer Hidayat and Riscky Aditya.

Quoting from the Fazz Finance website, the company provides a variety of financing products, like financing companies in general, namely investment, working capital and multipurpose products. Each provides interest options, ranging from 14%, 18% to 30% per year.

The entry of Fazz Finance completes the subsidiaries under Fazz. Here are the details:

1. Fazz Agent: agent-based financial application that serves micro and small businesses in Indonesia by providing easy access to payments, wholesale purchases and equitable capital.
2. Fazz Business (rebrand from Xfers): offers fintech solutions for businesses, in the form of multi-currency accounts, sending and receiving payments, and growing funds with savings accounts.
3. StraitsX: payment infrastructure for digital assets, providing fast and secure access to digital asset markets and decentralized financial applications via the StraitsX API and stablecoin for individuals and businesses.
4. People's Capital: services p2p loans for MSMEs.