1. Startups

KoinWorks Continues to Add Institutional Lenders, Focus Services on SMEs

As of the second quarter of 2021, KoinWorks has disbursed more than 1 trillion Rupiah of productive loans to 300 thousand SMEs

Lendable re-injected debt funding to KoinWorks. If in 2020 the funds given were worth $10 million (equivalent to 149 billion Rupiah), now the nominal has increased to $30 million or around 435 billion Rupiah. In Indonesia, Lendable also disburses similar loans to Amartha in February 2021 with a nominal value of 704 billion Rupiah.

Previously in April 2020, KoinWorks also announced the acquisition of debt funding from two financial institutions from Europe. When contacted, the company refused to reveal its identity. In an interview, KoinWorks Co-Founder & CEO Benedicto Haryono indeed said that collaboration with institutional lenders was one of his strategies, both from domestic and foreign institutions.

He explained that the company had attracted institutional lenders since early 2018, marked by the entry of Saison Modern Finance. Then in the middle of the year joined Bank Mandiri. In 2019, Sampoerna and CIMB Niaga also joined.

Still focusing on SMEs

For the next plan after receiving the fresh funds, KoinWorks CFO Mark Bruny said that the company will still focus on serving the SME market which has great potential in Indonesia. This strategic collaboration is also said to be a success thanks to the transparency and good communication that exists between KoinWorks and Lendable.

"We believe that digital SMEs that have become borrowers on our platform will be able to survive and even seize the opportunity to thrive from this pandemic. Lendable agreed and they believe in the ability of Indonesian Digital SMEs and KoinWorks' ability to carry out this vision," Mark told DailySocial.id.

Asked whether there was a change in approval or additional requests from Lendable to KoinWorks through this second collaboration, Mark emphasized that the approval was still the same. Through the loan amount, which has increased by up to 300%, it is hoped that KoinWorks will accelerate the distribution of these funds to SMEs in Indonesia.

It is noted that to date KoinWorks has disbursed funding in the second quarter of 2021 as much as more than 1 trillion Rupiah to 300 thousand SMEs in Indonesia and a threefold increase compared to 2020. This indicates a significant development in this pandemic with many SMEs attending and pivot to digital.

In a research conducted by KoinWorks, it was revealed that SMEs that use conventional and digital channels actually dominate the market with a share of 48% compared to SMEs that only use digital channels (40%) or conventional channels (12%). This digital transformation has succeeded in helping Digital SMEs not only survive but are able to thrive during the pandemic.

This transformation was also a major factor in the rise of the Digital SME Confidence Index to the level of 2.49 from the level of 2.37 at the end of last year and pushed us closer to the normal level, namely at the level of 3.00.

Opportunities for foreign investors to Indonesia

More Coverage:

According to Mark, the interest of foreign investors in this case is those who provide funds in the form of: debt funding such as Lendable to Indonesia, because of the large business growth in Indonesia, especially among SMEs. Indonesia is the target of investors, seen from the potential and incoming investment.

Launched in 2015 and Lendable Inc through fintech has channeled a lot of capital to people in the world. This is a good way to be able to provide access to financial services to the public. The direct entry of companies such as Lendable to Indonesia has had a profound effect multiply for funding. By introducing foreign investors to Indonesia, it opens up opportunities for other fintech services in Indonesia to get fresh funds.

"As the most advanced platform today, it is fortunate for us to be able to do deal and help the ecosystem by introducing strong players as well as introducing Indonesia globally," said Mark.

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