1. Startups

JULO Targets Disbursement of IDR 10,5 Trillion Loans in 2024, Preparing to Become a Neobank

Throughout the first four months of 2024, JULO's total loan distribution increased by 87,19%, worth IDR 3 trillion

JULO announced achievements in loan distribution growth. As quoted from AC Ventures, during the first four months of 2024, JULO's total loan distribution jumped by 87,19% compared to the same period the previous year, exceeding $189 million or the equivalent of more than IDR 3 trillion. The company targets to distribute more than $650 million or around IDR 10,5 trillion this year.

Since its founding in 2016, JULO has managed to distribute more than $1 billion in total, with nearly $500 million distributed in 2023 alone—a 50% increase from the previous year. The company also recorded a significant increase in the number of users, attracting more than 2 million users with an increase of 58% by 2023.

JULO plays in three areas, that is cashloan, paylater, and online billing. JULO's latest growth milestones also include increased revenue by 73% by 2023 and retention rate per cohort by 75%+, claimed to reduce loan acquisition costs and increase operational efficiency.

Preparing to become a neobank

JULO is also preparing to transform into an impact-focused neobank, serving the largely underserved Indonesian market and advancing financial inclusion in the region. This is not the first time a fintech lending platform has the ambition to become a neobank, previously similar players such as ALAMI, KoinWorks and a number of others have realized this vision.

JULO's success to date is driven by innovative consumer financing products that use comprehensive behavioral data for advanced credit scoring. This strategy allows JULO to develop and offer a virtual credit card product designed specifically for Indonesia's middle-income population, providing unprecedented access to credit to millions of people and driving economic empowerment across the country.

In addition, JULO's growth is supported by partnerships with leading financial institutions, including global companies such as Credit Saison and local giants such as Bank Sampoerna and Superbank, to empower lending to the middle-income segment in Indonesia.

JULO Group President Ankur Mehrotra, explained, “Investor sentiment may fluctuate, reflecting broader economic and investment cycles. Despite this volatility, demand for responsibly led financial services companies focused on financial inclusion in Indonesia remains strong. At JULO, we are committed to being an entity focused on that impact. Today, there is clear investor interest in businesses like ours that not only provide substantial social impact but also generate solid financial returns for our investors.”

The middle market segment in Indonesia offers an opportunity of around $100 billion. The company recently launched non-credit products, such as insurance, in 2023 and will continue to develop new offerings.

Ankur added, “We are very optimistic about Indonesia's long-term macroeconomic prospects and the enduring potential of its financial services industry, considering that Indonesia has the lowest household debt to GDP ratio among ASEAN countries. Despite facing various crises and unexpected challenges, JULO has successfully navigated the market for more than seven years and is now growing more than ever. We are committed to building a business that will transcend generations.”

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Disclosure: This article was produced with AI technology and supervision of the content writer
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