1. Startups

East Ventures Leads Again 132 Billion Rupiah for Communal Funding

AlphaTrio Sustainable Technology Fund, Skystar Capital, Sovereign's Capital, Ozora and Gobi Partners participated in this round.

Communal, startup fintech which focuses on digitalizing BPRs, announced a round of $8,5 million (approximately 132 billion Rupiah) in funding led by East Ventures (Growth fund). AlphaTrio Sustainable Technology Fund, Skystar Capital, Sovereign's Capital, Ozora and Gobi Partners participated in this round.

East Ventures is Komunal's initial investor since the company was first established. In 2021, East Ventures injects Communal in round series A with a total value of $2,1 million.

Komunal will use these fresh funds to accelerate the company's mission, which is to encourage financial inclusion and strengthen the neo-rural banking ecosystem in Indonesia, especially outside Jabodetabek.

“As early supporters of Komunal, we have witnessed the growth and achievements of Komunal. We believe in the persistence and innovation that Hendry and the team have been present and will certainly continue to accelerate digitalization in the financial sector [..],” said East Ventures Co-founder and Managing Partner. Willson Cuaca in an official statement, Tuesday (17/1).

At the same time, the company also announced the joining of Peter Jacobs as commissioner as of 1 January 2023. Peter Jacobs has had a career in Indonesia since 1991 and held several strategic roles, such as Coordinator of the World Bank IMF meeting in 2018. His last position at the central bank was as Head of Department Banking Services, Licensing, and Treasury Operations for the 2019-2022 period.

“We are very happy to welcome Mr. Peter to Komunal. His extensive experience at Bank Indonesia will be invaluable and will provide a different color and perspective for the entire Komunal team," said Komunal Co-Founder & CEO Hendry Leviant.

Communal Achievement

Currently, Komunal has two business lines, namely DepositoBPR by Komunal and Komunal P2P Lending. Both of these businesses are engaged in the industry fintech with a mission to accelerate financial inclusion in Indonesia. DepositoBPR by Komunal is a marketplace application for BPR deposit products in Indonesia. Meanwhile, Komunal P2P Lending is a p2p lending platform that connects potential MSMEs with funders.

The company also fully acquired BPR Prima Dadi Arta originating in Kediri, East Java. Through this acquisition, the BPR will become a pilot for various developments in the BPR industry with the support of qualified technology.

To achieve this, over the past year the company has channeled savings and loans of $230 million (around 3,6 trillion Rupiah) to local BPRs and MSMEs. This figure shows a growth of 350% on an annual basis year-on-year compared to the previous year. As for the amount of deposits and loans disbursed, it is $50 million (equivalent to 781 billion Rupiah).

Meanwhile, transaction volume is expected to exceed $500 million by 2023. The company has also posted positive EBITDA since October 2022, recording growth as well as profitability at the same time.

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To date, there are more than 220 BPRs from 19 provinces in Indonesia that have joined the DepositoBPR by Komunal platform. Thus, the public can place deposits digitally with hundreds of BPRs throughout Indonesia without face to face but still safe because of the LPS guarantee and get higher interest from commercial banks.

Hendry said, his party was grateful for the trust given by investors, BPR partners, and all of their customers. "It is a particular satisfaction for us to see BPR partners grow through digitalization and our loyal customers can easily and safely access digital deposits and loans. In 2023, we hope that communal services can provide wider benefits, especially for BPR users and partners outside Java and Bali," he said.

"We are optimistic that the collaboration between fintech and incumbent banks (including rural banks) will create extraordinary synergy. Komunal sees the potential for partnerships with BPRs to increase financial inclusion for MSMEs in tier 2 and 3 cities," he continued.

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