Investree Acquires Nearly 19% Shares of Amar Bank

Investree Singapore Pte Ltd (Investree Group) announced the acquisition of a minority stake in Amar Banks by 18,84%, part of the Tolaram Group, after the signing of the transaction agreement. This strategic step is believed to accelerate financial inclusion in Indonesia.

In the future, both parties will carry out business synergies to provide a variety of financing products and offer digital business solutions to improve MSME operations nationally. Aligned with ambition Investree Group, which operates in Indonesia under PT Investree Radhika Jaya (Investree), is committed to expanding access to financial services for MSMEs through digital banking solutions.

This is because there are around 92 million and 47 million adults who do not have a bank account and do not have a bank account in Indonesia, respectively, and the unbanked and rapidly growing MSME segment accounts for around 60% of GDP.

Investree Group Director, Co-founder and CEO of Investree Adrian Gunadi said that the initiative is in order to create a cohesive collaboration between fintech and banks as well as product innovation to provide digital financing services and more integrated business solutions, as an expansion of reach to prospective debtors/MSMEs in cities that are included in the Amar Bank network.

“In addition, the acquisition will further enhance a strong ecosystem that has enabled Investree's strategic potential to increase to empower MSMEs across the country. This commitment is in line with one of the priority agendas of the Indonesian G20 Presidency, which is to encourage financial inclusion, especially for the MSME community which has not been well served by banks," said Adrian in an official statement, Tuesday (10/5).

Managing Director, Fintech & Infrastructure Tolaram Navin Nahata added, Investree's presence is in line with the company's efforts to build Amar Bank into a leading digital bank that focuses on consumers and MSMEs.

He believes Investree's in-depth knowledge of the local MSME financing space will enable Amar Bank to accelerate product diversification innovation to address an important but historically underserved segment of the Indonesian economy. "We look forward to a successful and long-term partnership with Investree," he said.

Amar Bank President Director Vishal Tulsian also stated in his statement, “This transaction is a significant step forward for Amar Bank. Investree's involvement and expertise will allow us to introduce new and improved product offerings for MSMEs in Indonesia, in addition to our flagship digital loan product, Tunaiku and mobile-only bank, My smile. Together, we will deliver Digital Banking with an Impact.”

Amar Bank Performance

Based on Amar Bank's performance presentation, the bank achieved a net profit of Rp4,1 billion last year and an increase in total assets of Rp5,2 trillion, which grew by 28,2% (yoy). In terms of loans, it grew 40,1% on an annual basis or amounted to Rp2,4 trillion. The majority of loans came from the Tunaiku lending platform, which disbursed Rp2 trillion, up 63%.

The entry of Investree is also Amar Bank's effort to meet the minimum core requirement of IDR 3 trillion by the end of 2022, based on POJK No. 12 of 2020 concerning commercial bank consolidation. The Bank has completed Rights Issue I on March 1, 2022, and remains optimistic that it can fulfill the provisions by the end of this year.

The same is done by other small banks. Previously, there was Xendit who acquire shares of Bank Sahabat Sampoerna, parent Kredivo which officially controls 75% of the shares of Bank Bisnis Internasional, Grab and Singtel as a strategic investor in Bank Fama, Modalku and Carro invest in Bank Index, and Ajaib Group holds 40% of Bank Bumi Artha's shares. The rest is still just rumors, just waiting for news of the inauguration, such as Amartha which is rumored to be acquiring Bank Victoria Syariah.