Investree Raises Series D Funding of IDR 3,6 Trillion Led by JTA Holdings

Startups Investree, through its parent company Investree Singapore Pte Ltd (Investree Group) will receive series D funding worth 220 million Euros or the equivalent of 3,6 trillion Rupiah led by JTA International Holdings, followed by old investor SBI Holding, which previously funded Investree in the series round B and C.

It was stated that series D funding is still in the process and will be finalized at a later date.

At the end of last year, Investree has announced plans to raise series D. JTA Holdings demonstrated its commitment to lead the round. The target for closing this fund has been delayed from the initial plan, namely January 2023.

As part of the agreement, JTA International Holding and Investree have completed the establishment of a joint venture company called “JTA Investree Doha Consultancy”, which functions as Investree's center in the Middle East to offer MSME digital lending technology solutions, one of which is an AI-based credit assessment service.

This joint venture allows JTA International Holding and Investree to present innovative technology built in Indonesia to empower MSMEs in Qatar, the Middle East and Central Asia.

Investree last raised $23,5 million in a series C funding round in March 2020 led by MUFG Innovation Partners and BRI Ventures.

President Director & Co-Founder/CEO Investree Adrian Gunadi said that the fresh funds would be used to expand its products and services, as well as increase collaboration with various partners to provide more innovative digital solutions for MSME players.

He also emphasized that the establishment of JTA Investree Doha marked their joint vision to further expand digital MSME lending technology, with JTA Investment Holding as Investree's strategic partner.

“We can say that to date, the joint venture between Investree and JTA International Holding has been completely established and officially recognized by the Qatari government. The process takes time as there are various steps that we must comply with. with the laws and regulations in Qatar," said Adrian.

Founded in 20105, Investree provides four loan products for MSMEs, namely Invoice Financing for MSMEs which provides services/products to large companies with payment sources from invoices; Working Capital Term Loan (WCTL) for MSMEs with unique business models; Buyer Financing for MSMEs as retail buyers at large retailers/wholesalers; and Micro Productive Loans for ultra-micro entrepreneurs from the Investree partner ecosystem.

As of October 2023, Investree Indonesia has recorded total loan disbursement of IDR 13,97 trillion in the form of productive loans since its founding in 2015. Investree Indonesia is a subsidiary of the Investree Group, a holding company based in Singapore, together with Investree Thailand and Investree Philippines.

Stumbled upon the issue of failure to pay

In Indonesia, in May 2023, Investree was on the OJK's radar because it was linked to the issue of default. Lenders (lender) at Investree has not been paid for hundreds of days. Companies have been asked by regulators to come up with action plans, such as increasing collection efforts on overdue portfolios.

"We will follow up again if it is not appropriate," said the Chief Executive of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions (PMVL) OJK Agusman as quoted from CNBC Indonesia.

This condition is an important concern, because the TKB90 recorded on the company website is 95,37% as of today (5/10). This figure is slightly lower than the industry average of 96,53% as of July 2023.

The Investree application on Google Play has been bombarded with complaints Actioncalendar who claimed not to have received returns for more than hundreds of days.