IDEAL Debuts with Pre-Initial Funding of 57 Billion Rupiah, Democratizing the Mortgage Application Process

Startups proptech focused on helping ease the process of financing or managing mortgages "IDEAL" announced the acquisition of pre-start funding of $3,8 million or IDR 57 billion. This round was led by AC Ventures and Alpha JWC Ventures, with participation from Living Lab Ventures and Ciputra Group.

The fresh funds will be utilized by IDEAL for product development, recruitment and service improvement. This startup was founded by a number of founder, including Albert Surjaudaja, Ian Daniel Santoso, Indira Nur Shadrina, and Jeganathan Sethu.

Services and business models

Platform IDEAL help users calculate property financing costs and installments in detail according to their needs and preferences. They also provide an application system that allows users to apply for financing at several banks at once. Interestingly, there is a dashboard to monitor the progress of the submission.

IDEAL's goal is to simplify and digitize administrative processes that have been complex, time-consuming and costly. In addition to providing a sense of security, because documents can be managed safely --- there is no need to send photos of ID cards via WhatsApp to agents or the like.

IDEAL's business model by charging a commission to banks and property developers for every successfully facilitated submission. In its initial debut, currently IDEAL has collaborated with five banks, including CIMB, OCBC, and Maybank; also with property developers such as Sinar Mas Land, Ciputra Group, and Agung Sedayu Group.

"IDEAL is special because we prioritize the minds and hearts of consumers in making product development decisions. Therefore, we are also present with an extensive network, both in banking and property developers. We believe that our investors have the same vision, which is to help the people of Indonesia achieve their ideal life, starting with digitizing the mortgage process," said Albert as CEO.

Problems in property financing

According to Bank Indonesia data, by 2021 the local mortgage industry will be worth $39 billion with a projected growth of 17% in the next five years. Gen Y and Gen Z are considered to be dominating the working population in the next 10 years, so they will become the main target market for the property sector.

Currently 75% of home purchases in Indonesia are made by mortgage, however, due to minimal financial literacy, the majority of applicants do not fully understand these processes. Meanwhile, on the lender's side, they also face challenges such as a messy document delivery process, data security, and many more.

To solve this problem, startups like IDEAL are digitizing processes to provide a new, more streamlined experience. On the other hand, the mortgage paradigm largely relies on the advice of property agents, IDEAL gives back control to buyers, so that they can choose the best mortgage product available in the market.

A number of startups proptech others also provide similar solutions. Among them my tan, concise, and Pinhome. The three also just received funding this year.