IFC Will Invest in Kitabisa Worth 75 Billion Rupiah

International Finance Corporation (IFC) submits investment proposals to startups through crowdfunding Kitabisa is worth $5 million or IDR74,8 billion. On the IFC's official website, the status of this investment application is listed as still awaiting approval (pending approval).

"IFC proposes an equity investment of up to $5 million in the company through the purchase of preferred stock," it said in the Summary Investment Information (SII). As for, projected board date targeted on August 23, 2021.

Through this investment, IFC projects an increase in access to insurance services to underserved segments in Indonesia. We can be expected to enter this segment through this approach direct-to-consumer (D2C) and digital native through sharia-based insurance products on-demand. 

Kitabisa is also believed to be able to overcome these obstacles in Indonesia thanks to a digitally based business model end-to-end, the development of unique and affordable products, and its efforts to increase public awareness of the importance of insurance products.

For information, Kitabisa operates digital-based donation and fundraising services to serve the low and middle income segments. Meanwhile, IFC is a consortium under the auspices of the World Bank that has invested in a number of startups in Indonesia, namely: eFisheries, AntherAjaand PasarPolis.

Business expansion

In its SII, Kitabisa is listed as planning to expand its business into sharia and insurance services. Previously known Kitabisa had time to operate the platform crowd insurance named Mutual Jaga in April 2021. However, Mutual Guard had to be discontinued on August 31, 2021 due to licensing constraints.

Based on last year's news, Kitabisa has previously registered Take Care of each other to regulatory sandbox OJK. According to the OJK, one of the concern of this platform is the concept crowd insurance Take care of each other which involves many people to donate to mutual cooperation.

In October 2021, We can do pivot service insurtech by setting up the channel we take care. Through this platform, people can buy life insurance products through the Kitabisa application.

Since its establishment in 2013, Kitabisa has had 6 million donors, conducted 100 thousand fundraising, and was supported by 3000 NGOs/foundations/institutions and 250 CSR programs/brands/companies. Based on the Ernst & Young (EY) audit report in 2020, the total amount of donations received at Yayasan Kita Bisa has reached IDR 835 billion.