1. Startups

Communal Secures Early Stage Funding from East Ventures and Skystar Capital

Disbursed a loan of IDR 50 billion for SMEs in the East Java region

Startups p2p loans Communal announced that it has secured early-stage funding from East Ventures. It is not stated how much the startup from Surabaya received. Skystar Capital is also taking part in this round.

The funds obtained will be used to accelerate its mission of bridging gap funding needed by SME owners in Indonesia that cannot be served by banks.

Initial idea Communal emerged when the founders realized the large amount of funding Indonesia had experienced since early 2018. Gap Funding for SME owners in Indonesia is said to reach IDR 1.000 trillion per year.

Communal Co-founder Hendry Lieviant explained, SMEs are currently the backbone of the Indonesian economy because they contribute more than 60% to Gross Domestic Product (GDP) and are able to absorb labor. Unfortunately they have difficulty getting funding due to a lack of loan history and large operating costs.

"Through Communal, we want to help potential SMEs to continue to grow and contribute to substantially improving the Indonesian economy, as well as reducing inequality," added Hendry.

Meanwhile, Communal Co-founder Rico Tedyono added that the business model p2p loansproven to be able to help improve the quality of economic growth, through better financial inclusion.

"Communal not only provides an opportunity for the general public to become lenders with attractive interest rates, but we also open new access to funding for borrowers who cannot be served by banks. Through our platform, SME owners can now get the loans they need grow," said Rico.

Managing Partner of East Ventures Willson Cuaca revealed that Komunal has the same mission as East Ventures, which is to encourage financial inclusion in Indonesia. The Communal team is also said to have proven their ability to execute quickly and precisely.

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"We are happy to be able to join hands with them in opening up better opportunities for MSMEs in Indonesia," said Willson.

Within 8 months Communal has disbursed loans with a total value of up to IDR 50 billion for SMEs in the East Java region. Communal is also preparing itself to be present in more cities in East Java and other provinces.

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