1. Startups

KoinWorks Refines Presence as a Neobank to Work on the MSME Segment

Just booked series C funding, consisting of $43 million in equity and $65 million in debt; the company's valuation is now estimated to have reached $250 million

Neobank becomes KoinWorks' new weapon outside of business lending, to reach more target users from the MSME segment who have limited access to financial services. Currently, the product is still in the beta phase of the third phase, which is planned to be officially released in April 2022 by announcing a new solution that is claimed to be the first to be present in Indonesia.

In a joint interview DailySocial.id, KoinWorks Co-founder & CEO Benedicto Haryono explained that for now neobank is the company's new priority, a lot of resources are directed to increase capacity, including through the use of the company's newly announced series C fresh fund of $108 million which will be directed to the development of this latest product.

For the record, this series C funding is led by MDI Ventures, with participation from previous investors, such as Quona Capital, Triodos Investment Management, Saison Capital, ACV, and East Ventures. This funding is split into two, in the form of $43 million in equity and $65 million in debt.

According to the data we got, from existing equity funding CoinWorks, now the company's valuation has reached around $250 million with MDI as the largest shareholder.

“We are trying to enter neobank because there are still many segments that we have not touched as a company lending, considering they can't yet generate enough data, has not been qualified with access to credit. Meanwhile, our mission is to reach as many businesses as possible from all segments,” he explained.

Furthermore, Benedicto said that neobank will later become the initial gateway to increase the capability of MSMEs, which are still underserved and underbanked, before leveling up and getting access to credit from the lending provided by KoinWorks.

Within the existing range of financial products in neobank, the company offers a variety of products that are incorporated from a Neobank for SMEs, such as NEO Accounts and NEO Cards, to access to loans and increasing productivity in business.

On the KoinWorks platform, users will find marketplace integrated applications such as accounting software, POS, E-commerce, HRMS for SMEs, applications budgeting with KoinWorks main products, such as providing working capital, factoring, EWA (Early Wage Access), and fund management - designed to help business owners become self-sufficient and make financial services accessible and affordable for everyone.

The solutions above are presented with partners, one of which the company has announced previously is Bank Sampoerna. Both parties take advantage of each other's competence advantages in their fields, especially technology in carrying out the cooperation.

"We are the forum, marrying financial solutions for MSMEs so that they are more personalized and tailored to better suit their needs. So that they have access to more integrated finance, both in terms of financial invoice etc."

This NEO solution can later be accessed through the main KoinWorks application, but is only intended for business accounts, not personal accounts. Since it was initiated in April 2021, until now it has brought more than 100 thousand SMEs on the waiting list and they are starting to be able to enjoy these products gradually.

Recruit talent engineer double

With technology as backbone from a digital startup, KoinWorks will also allocate most of its fresh funds to recruiting the team engineer best capabilities to support product and technology development. Currently team engineer there are 70 people in the company and the plan is to increase it to 300 people this year.

To meet this need, Benedicto said it was possible for the company to acquire the company, as before done in 2019. At that time, the company did acquire software development company in Yogyakarta. All the talents in the company are fully merged into a team engineer. Not only in Yogyakarta, the company also has a team engineer spread over India and Vietnam.

In serious team engineer, including handling the technology, data, and security side, in July 2021, the company recruited Jim Geovedi as CTO. Jim has strong experience as a security consultant, technology advisor, and digital innovation leader for several technology companies in the country.

Regarding the performance of KoinWorks, the realization of loan disbursement during the past year was recorded at more than Rp. 5 trillion, a double increase compared to the previous year of Rp. 2,5 trillion. While the total users reach more than 1,5 million people, with the composition of lenders as much as 900 thousand dan borrowers as much as 600 thousand.

Application Information Will Show Up Here
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again