Since Rebranding as OVO Financial, Taralite Services have become increasingly integrated with Grab and OVO

OVO Financial, rebrand from Taralite, strives to grow healthily by entering the parent ecosystem, OVO and Grab, so that credit distribution is of higher quality. Now OVO Financial is not only involved in distributing productive credit, but also consumptive.

To DailySocial.id, Main Director of OVO Financial Riady Nata said, as of August 7 2023 Taralite officially changed its name to OVO Financial. These changes are subject to strict supervision by OJK based on POJK 10/2022 and other applicable regulations.

"All previous business activities under the Taralite platform remain legally valid and will continue under the OVO Financial platform," he said.

Like most other lending players, OVO Financial provides business loans to encourage equal opportunities in business growth. The difference is, because this company is part of OVO and Grab, then the solution is attached to the user needs of the parent company.

The following are OVO Financial products so far:

1. OVO | Business Capital: funding by guaranteeing ongoing bills as a source of loan payments (invoice financing) to help maintain the cash flow of business owners. Available limits start from IDR 50 million-IDR 2 billion and a tenor of 1,5%-2,25% per month.
2. GrabMantul Capital: short-term cash loans to merchant partners Grab and OVO with daily installment payment method. The limit starts from IDR 500 thousand-IDR 30 million and the tenor is 3%-4% per month.
3. OVO | Paylater: provides easy payment for various services, such as Grabfood, GrabBecause, GrabBikes, and GrabMart. This product is still in beta and not all OVO usersGrab who can enjoy it.

Only OVO | Business Capital marketed through OVO Financial and indirectly for the OVO ecosystem and Grab. Meanwhile, the remaining two products are presented via Grab and OVO respectively.

Through the three products above, OVO Financial claims to have distributed loans amounting to IDR 477 billion last year. There was no mention of growth from the previous year. However, Riady said that cumulatively since the company was founded in 2015, IDR 2,29 trillion in loans had been disbursed to more than 240 thousand borrowers.

As of today (25/1), TKB90 OVO Financial is at 98,88%, this figure is considered healthy. Based on OJK data, as of September 2023, the average TKB90 in this industry is 97,18%.

Compared peersIn fact, this figure tends to be moderate. However, Riady stated that he was optimistic about the growth of digital transactions throughout 2023 providing an optimistic prospect for 2024. Referring to Bank Indonesia's projections, the growth in digital transaction value is estimated at 23,2% in 2024, reaching IDR 71.584 trillion.

Moreover, OVO Financial prioritizes healthy growth in credit volume and quality as an approach to competing in a dynamic industry.

"OVO's innovation and integration of digital payments into everyday needs puts us on a sustainable growth path, contributing to overall digital transaction growth this year," he concluded.

As a note, OVO Group (PT Bumi Cakrawala Perkasa) oversees a number of financial companies, including: OVO (PT Visionet Internasional) and OVO Finansial (PT Indonusa Bara Sejahtera), Bareksa (PT Bareksa Investment Portal), and PT ZA Tech Global Indonesia.

OVO Financial was previously acquired by OVO in March 2019. Before the CEO position was led by Riady, this company was founded by Abraham Viktor. Abraham left his position and is now founding the startup Hangry.