Investree Undertakes Restructuring, SBI Holdings Injects Rescue Funds of IDR 109 Billion
SBI Holdings is an existing investor in Investree, which is planned to also inject series D funding with JTA Holdings
After experiencing serious issues due to mismanagement, previous investors Investree reportedly 'worked together' to save the startup by providing new funding. According to sources Deal Street Asia, currently one of their investors, SBI Holdings, has injected $7 million or 109,5 billion Rupiah.
$4,5 million of that has been used to pay company expenses, including salaries, taxes, debts and other costs. The remainder is used for legal, insurance and rental needs.
The additional ammunition was disbursed after Adrian Gunadi left his position as CEO last week. Adrian is suspected of committing a violation because he diverted company funds to his personal account and used the company name to make guarantees outside the provisions.
One of the founders of Investree, Kok Chuan Lim, previously said that the company would carry out massive restructuring to maintain its sustainability and make it healthy again. Moreover, Investree is also currently being monitored by the OJK after there were allegations fraud --- also due to TKB90 which is below average. Remembering a lot Actioncalendar who complained that their funds could not be withdrawn.
TKB90 is the success rate of P2P Lending providers in facilitating the settlement of loan obligations within 90 days of maturity. Meanwhile, Investree has TKB90 at the threshold of 83,56%, while the average player others above 97%.
Investree itself has been registered with the OJK as since May 2017. Via application marketplace lending his company, he facilitates the distribution of loans (retail and institutional) to MSMEs and individuals in the productive sector. So far they have distributed IDR 14,53 trillion in funds to more than 93 borrowers (individuals and institutions).
When conditions are still fine
Since 2021, Investree's focus is regional expansionPreviously, they even managed to obtain a license from the Thai Securities and Exchange Commission (SEC) to provide financing services to local MSMEs. In the Philippines, Investree also experienced the same good luck, they managed to get permission from the local authorities. Due to its performance, a number of global financial institutions injected funding debt to increase the value of fund distribution, one of which is IDR 142 billion responseAbility.
Product development is no less accelerated, after maturing with productive loan services, Investree expanded its product line to the procurement financing segment in collaboration with a number of partners. Then, sharia services were also launched and there was even news that they would di-spin-off become a separate business entity. Plans to enter digital banking were announced after the company acquired 18,4% of Amar Bank's shares.
Investree also invested in startups fintech payment OY! and shape j. The aim is to expand the financial services ecosystem to become more complete.
Beyond funding debt obtained, Investree has also booked equity funding from a number of investors. Until the series C round, Investree managed to book funds of $31,7 million with a valuation range of $200 million. Their ranks of investors include Kejora, SBI, MUFG, BRI Ventures, Mandiri Capital Indonesia, Endeavor, and several others.
In 2022, Investree will continue fundraising with JTA Holdings announced as lead for D series round. The investor commitment will inject funds of 200 million Euros or the equivalent of 3,6 trillion Rupiah. Unfortunately, according to news circulating, these funds will not be disbursed until early 2024, making the company have to tighten runway.