Fintech Startup Funding "Danacita" Boosts Expansion Through Partnerships with Educational Institutions

Platform fintech education financing Dancita continue to expand their strategic cooperation with formal and non-formal education institutions. Until now, there have been around 130 institutional partners who have joined the platform.

To DailySocial.id, President Director of Danacita Alfonsus Wibowo revealed that their business model is still the same, namely in the form of fintech p2p lending. It is noted that there have been large universities that have joined, such as Tarumanagara University (UNTAR), President University (PU), PLN Institute of Technology (IT PLN), and a number of others.

Meanwhile, non-formal institutions such as courses to coding classes which ensures that their graduates can immediately work, has also partnered with Danacita. Among them are Hactiv8, Binar Academy, CourseNet, Co-Learn, and Purwadhika.

"For the number of formal and non-formal institutional partners, the number is quite balanced. Because the profiles for non-formal students are not many, but ticket sizes quite big," said Alfonsus.

Consistent with core business

Still consistent with their mission of making it easy for everyone to get education fees, Danacita is still reluctant to add new products and services on their platform. Although there are several offers from the university in order to provide financing for student needs such as laptops and others.

Previously, Dana Cita was also a company fintech strategically partnered with Gojek to support financing in its ecosystem together with Findaya (supporter of Gopay Paylater) and Aktivaku.

The pandemic also did not reduce the interest of prospective students to continue their higher education. This can be seen from the increasing number of borrowers applying for financing. Offended by anyone Actioncalendar or lenders who are members of Danacita, it is recorded that currently most of them are from institutions.

"With the payment options we offer, the concept is generally more attractive to institutions. This is what distinguishes us from other P2P platforms," ​​said Alfonsus.

The loan tenor provided by Danacita ranges from 6 to 24 months with platform fees ranging from 0 to 1,75% plus an approval fee of 3% of the total funds. The business concept promoted by Dana Cita is “Study Now, Pay Later”, enabling students or parents to apply for study financing loans at formal institutions. The platform will pay the loan funds directly to the relevant institutions.

In Indonesia, there are several financing startups for education. In addition to the Cita Fund, there is DANAdidik, Smart, KoinWorks, and EiduPay.

Launch expansion

Danacita itself is one of the few financial technology companies that focus on financing education in Indonesia, which is also licensed and supervised by the OJK. Currently, Danacita has distributed financing to more than 14.000 students in Indonesia, with a total financing of more than Rp140 billion.

ErudiFi, the parent company of Danacita has bagged the series A pendanaan funding worth $5 million or the equivalent of 70,5 billion Rupiah in 2021. After receiving the fresh funds, Danacita has launched their strategy, namely increasing the number of partnerships with educational institutions.

Asked whether the company has a plan to raise funds to the next stage, for now they do not have a fundraising plan. However, it is possible if there are investors who have the same vision and mission as the company, fundraising can be done.

Apart from Jabodetabek, currently Danacita has also expanded to Yogyakarta and has partnered with several campuses in Central Java. In addition, they have also expanded their presence in East Java, Bali, to Makassar.

"Since 2018, Danacita has been trusted to be part of the journey of tens of thousands of students and professionals in Indonesia in achieving their future dreams. We consistently continue to build collaborations with educational institutions, both formal and non-formal, by prioritizing affordable technology-based financing," said Alfonsus .