Moladin Inaugurates Multifinance Business Line to Strengthen the Used Car Ecosystem

Moladin Group introduced its newest subsidiary, PT Moladin Finance Indonesia (MOFI), which is engaged in financing. The presence of this new business is believed to be able to strengthen the used car ecosystem, due to the high need for financing in the industry.

In a press conference held today (21/6), SVP Lending Moladin Mulyadi Tjung explained that his party took over the majority of shares in PT Pro Car International Finance (Pro Car). The permit was successfully obtained from the OJK at the end of February 2023 and the transaction was completed one month later. No mention of the nominal value of this transaction.

"Mofi's board of directors is currently occupied by the old board of directors, but it is possible that there will be changes in the future," he explained.

According to him, MOFI's presence in the Moladin ecosystem will provide added value to its users, not only end consumers but also Moladin's partner agents and dealers who need access to funding. Therefore, the ecosystem at Modalin is the first target consumer for this initial MOFI release.

At this early stage, like most other finance companies, MOFI focuses on meeting consumer needs, both for productive through investment financing and working capital financing, as well as consumptive needs through multipurpose financing.

"Because to complete the ecosystem used car inseparable from the need for financing throughout supply chain leadersits, dealers need financing inventory until sell to end users also need financing. There are also agents who need working capital, multipurpose, which can be referred to MOFI."

Challenge

As a newcomer to the financing industry, MOFI is aware of the reality of the importance of cheap sources of funds in order to provide competitive tenors in the market. So far, the company still relies on sources of funds from its own equity combined from local and international banks.

However, while building a good reputation, the company adopts a strong technology approach to build a better and more efficient consumer experience.

"The company just changed its name in April, so we are still babies and cannot be compared to adults. We are still building a reputation, so cost of funds we are not the best. So we prioritize competition, not interest rates. Our target is to build a foundation so that we can love consumer experience which is better," Mulyadi said.

Described further, each leads Loan applications that come from the Moladin ecosystem will be processed internally for e-KYC, including checking SLIK and other alternative scoring data. Furthermore, it will be reviewed in the field for further verification, before the application is approved.

"credit engine This is used for MOFI dealers and potential customers. We build this technology efficiently because it is used building blocks. Which, in principle and in service, credit engine This can be used for two different business verticals," added Chief Product Office Moladin Praz Perkasa.

This technology, not only makes it easier for the company but also the consumers themselves. Because the application process is simpler, only requiring an identity card (KTP), vehicle registration certificate (STNK), and family card (KK). Currently, loan applications are available through two channels, namely the official Moladin website and through Moladin agents.

"In the future we are still exploring an omnichannel strategy for consumers, which one is the easiest for us to contact. For example, with an AI voice bot, you can call us to get information and process it automatically, or chat to WhatsApp to be able to immediately simulate the loan and directly upload required documents," he added.

Regarding Moladin's achievements, it is claimed that the company has collected more than 150 thousand Moladin agents and more than 6 thousand dealer partners. Meanwhile, it has established partnerships with 24 finance companies.

In February Also yesterday, the company laid off 11% or around 360 employees. The reason is due to strategic adjustments in order to achieve business sustainability in the long term.

Acquisition of finance companies

As a note, the act of startups acquiring finance companies is quite widespread in Indonesia. This interest is because they can touch more comprehensive loan and financing products. Technology support and pocketed licenses, enable startups to offer financing products with new approaches and to more industrial sectors.

The following is a summary of the financing companies acquired by startups:

1. Atome acquisition of PT Mega Finadana Finance (now named PT Atome Finance Indonesia)
2. Kredivo acquisition of PT Swarna Niaga Finance (now named PT FinAccel Finance Indonesia)
3. Traveloka acquired PT Malacca Trust Finance (now named PT Caturnusa Sejahtera Finance)
4. Modalku acquired PT Buana Sejahtera Multidana (now named PT Modalku Financial Indonesia)
5. Xendit acquires PT Globalindo Multi Finance
6. Honest acquires PT Sahabat Finansial Keluarga (now PT Honest Financial Technologies).
7. GoTo acquires PT Rama Multi Finance (now named PT Multifinance Anak Bangsa)