LinkAja Announces 1,4 Trillion Rupiah Led Series B Funding Gain Grab

Electronic money platform LinkAja announced the acquisition of Series B funding of approximately $100 million (1,4 trillion Rupiah) led by Grab. In the round also participated previous investors, namely Telkomsel, BRI Ventures, and Mandiri Capital. It is not stated how much LinkAja's current valuation is. This funding is the first for LinkAja from a company outside of SOEs.

This funding will be fully utilized to accelerate growth LinkAja become a national financial technology leader that focuses on middle class consumers and MSMEs in Indonesia.

Strategic investment from Grab includes various synergies and broad collaboration potential for both parties. This synergy and collaboration in terms of access to ecosystems and technology will accelerate financial inclusion for the people of Indonesia.

In an official statement, Main Director of LinkAja Haryati Lawidjaja said that his party was enthusiastic about joining Grab as a shareholder in the company. He believes in strategic cooperation supported by investment and technological strength Grab this will strengthen LinkAja's services in presenting effective solutions to provide financial and economic access for the people of Indonesia.

"We are also very grateful for the trust and support of all shareholders and the Ministry of SOEs. Series B investment from Grab, Telkomsel, BRI Ventures, and Mandiri Capital is a form of trust in the business model and initial achievements that have been achieved by LinkAja in one since its establishment," he said, Tuesday (10/11).

Managing Director of Grab Indonesia Neneng Goenadi added that the company chose to invest in LinkAja because together the two companies could accelerate their goal of accelerating financial inclusion in Indonesia.

"The strategic collaboration between LinkAja and our digital ecosystem, including OVO and Tokopedia, allows us to provide a variety of cashless services for all levels of Indonesian society safely, comfortably, and easily accessible," said Neneng.

Previously, in November last year LinkAja was available as a one of the payment options in app Grab as well as its competitors Gojek.

LinkAja's achievements throughout 2020

Haryati continued that the success of raising investment in the midst of this pandemic is a testament to investor confidence in the LinkAja business which is supported by many advantages.

From the side of shareholders from the ranks of SOEs; a unique business model resulting from strategic partnerships with SOEs, local, central, and private governments, which come from multiple industries; hyperlocal knowledge base and distribution network with wide coverage in tier two and three cities, plus over 1 million points of receipt cash in/cash out.

“Innovative product with a strong brand that is rapidly developing into an iconic local fintech platform, and a provider of daily necessities with payment methods that can be accepted at thousands of merchants, with a variety of e-commerce, and various means of transportation.”

LinkAja is claimed to be able to increase the gross transaction value (GTV) and the number of transactions in the third quarter of this year by 3 times compared to the same period in the previous year.

It is said that LinkAja now has 58 million registered users with more than 80% of them coming from second- and third-tier cities. Last April, the company inaugurated sharia services and has obtained a Sharia Conformity certification permit from the DSN MUI and Bank Indonesia. This Sharia service is claimed to have more than one million users, since six months of its launch.