Modalku Group Enters Multifinance Business Through Acquisition

Startups The Modalku Group expands market reach by offering financing solutions finance through the acquisition of PT Buana Sejahtera Multidana. The focus remains on the MSME segment. This announcement also inaugurated a new entity under the Modalku group with the name PT Modalku Financial Indonesia or Modalku Finance.

This corporate action was followed by a change in share ownership, the Modalku Group became the majority shareholder, as well as a change in business focus to productive financing for PT Buana Sejahtera Multidana. His party revealed that this was a well-planned management strategy in order to optimize business growth and support more MSMEs in Indonesia.

Related finance, Modalku Co-Founder Reynold Wijaya revealed that the development of Modalku Finance was driven by demand and consumer expectations for increasingly diverse access to funding. Apart from that, it is also to reach wider market accessibility, by presenting a more varied range of products with higher business capital limits.

Steven Gunawan who was appointed as President Director of Modalku Finance said, "The presence of Modalku Finance is expected to present financing solutions in the productive sector in the form of products that can be useful for financing capital activities for companies such as purchasing raw materials, financing accounts receivable, and increasing business production capacity." he added.

Modalku Finance Products

Modalku Finance offers various financing functions, including Working Capital Financing, Investment Financing, and Multipurpose Financing. Working Capital Financing can be used to meet expenditure needs that run out in one business activity cycle.

Investment Financing services can be disbursed to capital goods and services needed for business/investment activities, rehabilitation, modernization, expansion, or relocation of business/investment premises. Meanwhile, Multipurpose Financing can be used for consumptive purposes and not for business purposes.

The nominal offered for working capital and investment financing itself is greater than that offered for services P2P lending Modalku Group, starting from IDR 500 million to IDR 25 billion with loan tenors that vary up to 12 months.

As for multipurpose financing, financing starts from IDR 50 million with various tenors. The payment scheme offered is quite flexible, where principal payments can be made all at once at the end of the tenor or in monthly installments according to the selected product. Interest starts from 1% per month with fast processing time.

Regarding the differentiation with the Modalku Group, Steven explained that the purpose of Modalku Finance can be used for MSMEs that are upgraded so they need more funding. Remember, P2P lending can only disburse a maximum loan of IDR 2 billion, temporarily finance could reach IDR 25 billion.

Future goals

If seen in previous years, the industry finance indeed experienced a downward trend, especially during the Covid-19 pandemic which caused financing receivables to continue to decline.

However, entering 2022, OJK recorded a score outstanding accounts receivable financing finance in August 2022 it increased by 8,57% to IDR 389,54 trillion. This proves that there is an increasing trend in the industry finance.

Meanwhile, President Director of Modalku Finance Steven Gunawan revealed, the Modalku business group has long dreamed of entering the industry. finance. He also added that one of the company's value propositions is to focus on productive financing.

Going forward, Modalku Finance will consistently carry out various business and technology innovations to expand its reach. Modalku Finance is part of the Modalku Group. To date, the Modalku Group has channeled working capital of IDR 40,42 trillion to more than 5,1 million MSME funding transactions in Indonesia, Singapore, Malaysia, Thailand and Vietnam.

Regarding plans to enter neobanks, Reynold emphasized that for now there are no plans to make any more acquisitions, including increasing share ownership in Bank Index to become the majority shareholder. "We definitely don't have any acquisition plans for banks because of various things that are often explained, on the one hand they are very expensive," Reynold said.

He added, currently more focused on business continuity towards profitability. Thus, it will be wiser to expand in the future. "To achieve a profitable company target, we continue to focus on developing fundamentals and business," said Reynold.

Prior to this expansion, Modalku also had time acquire startup fintech payment from Singapore called CardUp. In addition, through its subsidiary Funding Asia Group, Pte. Ltd, Modalku owns a 10% stake in PT Bank Index Selindo.

To date, Modalku has channeled business capital of IDR 40,42 trillion to more than 5,1 million MSME funding transactions in Indonesia, Singapore, Malaysia, Thailand and Vietnam.