Flip Gets Series B+ Funding Worth 811 Billion Rupiah

Flip announced the acquisition of additional funding for its series B round worth $55 million or equivalent to IDR 811 billion. This time, Tencent is leading the funding, followed by Block (formerly Square) and Insight Partners. Amount angel investors involved, including Guillaume Pousaz (CEO of Checkout.com); Gokul Rajaram (Doordash executive and commissioner of Coinbase, Pinterest), and Michael Vaughan (ex-COO Venmo).

This new investment continues series B perolehan which Flip announced in late 2021, worth $48 million led by Sequoia Capital India, Insight Partners and Insignia Venture Partners. According to our sources, the total equity funds that have been obtained by this startup have reached $120 million or equivalent to 1,7 trillion Rupiah.

This additional capital will be focused on strengthening the team, particularly in the technical and product divisions. Currently, Flip has more than 400 employees. This is done to accelerate the development of new products and technologies.

Flip COO Gita Prihanto said that as of May 2022 they had served more than 10 million users --- an increase from the previous 2021 million in December 7. Their main service helps users make interbank transfers, top-up, and remittances.

On the other hand, their B2B services are also growing rapidly. B2B Flip It has been used by hundreds of companies to help process employee payroll, customer refunds, invoice payments, and remittances. In total each year they record transactions of up to $ 12 billion.

Interbank transfer service

Flip is here to address issues related to interbank transfer fees which are quite expensive --- especially felt by the lower middle class and MSME players. Flip technology is capable of being “forward" For example, a user from bank A wants to transfer to bank B, then he can first transfer to Flip's bank account A and then forward it to the bank B's destination account of the prospective beneficiary by Flip's bank account B automatically.

The concept is well received by the people of Indonesia. Moreover, Flip's business model is freemium, to some extent users can use the service for free.

Other players are also starting to present this service as one of the superior features. For example done by the platform e-money DANA, the service had established them in the highest ranking for similar platforms. As of December 2021, more than 350 million transactions by using the "Send Money" feature in DANA, an average of 30 million transactions per month.

A similar strategy is now being applied by many fintechs, including digital banking platforms that have recently emerged.

On the other hand, Bank Indonesia has also released BI Fast Payment (BI-FAST), reducing interbank transfer fees to IDR 2.500. In response to this, in a interview with DailySocial.id, Co-founder and CEO of Flip Rafi Putra Arriyan said that his party always welcomes the policies made by Bank Indonesia because they are in line with Flip's vision of providing fair financial technology solutions for all people in Indonesia.

"To support this initiative, we are committed to continuing our efforts and innovation by utilizing technology to provide the best quality, both for practicality, convenience, and speed in transactions for customers throughout Indonesia."