AwanTunai Fintech Lending Startup Officially Presents, Distributes Funds from Corporations

Startups fintech which engages in the field of lendingCloudCash officially present in Indonesia. Prior to its inauguration, AwanTunai's business development had begun in May 2017 and had obtained a registration certificate at the OJK.

Slightly different from the players lending On the other hand, AwanTunai does not use individual investors as funders, but rather from corporations. One of the corporations committed to disbursing loans to AwanTunai users is Kredit Plus (PT Finansia Multi Finance), the current value is US$30 million. There are also several fund mutual funds from abroad as a source of funds.

Another difference, the company is targeting people with middle to lower economy as users. Also holding offline merchant as a distribution channel.

"So our source of funds is from institutions, even though we are still under the umbrella of POJK regulation No. 77 of 2016," explained CEO of AwanTunai Dino Setiawan, Wednesday (29/11).

Dino continued, his party saw that for the distribution of large funds, the availability of funds could not be relied on only from individual investors. Therefore, it is necessary to cooperate with institutions to ensure that the sources of funds are always available.

"Plus, the spending contribution from E-commerce to the retail industry is still 1%. Instead of looking at the 1%, it's better for us to develop from the 99% that already exists."

In the early stages, AwanTunai only serves loan disbursement for purchases smartphone with a maximum range of IDR 4 million. There are specific reasons why companies choose financing for smartphone which can be regarded as consumer credit.

First, in terms of purchase growth smartphone in Indonesia grew 40%. It can be concluded that these goods are a general need that can support productivity.

Second, as a first step the company collects user data. The data collected will be used by the company to formulate other consumer products that can be paid in installments.

"So far new smartphone just. We will provide other consumer products that can be paid in installments, which will be announced in the near future."

CashCloud business model

For the loan application process, prospective debtors only need to download the AwanTunai application and then upload an ID card as a requirement. Then the customer will be verified by credit engine which was built by CloudTunai itself. The guarantee is that within 15 minutes prospective debtors can find out the credit limit approval.

In its business model, AwanTunai has two types of distribution. First, cooperating with prospective debtors from institutions to ensure that the distribution is right on target and minimizes the potential for default. The institution that has partnered with AwanTunai is Blue Bird for its drivers.

Meanwhile, AwanTunai has only partnered with 42 pool Blue Bird is located in Greater Jakarta for 16 drivers over the last five months. Around 8 thousand applications were approved with a total distribution of around Rp. 5 billion. In the future, the company will expand to Blue Bird pool located in Surabaya.

Next, CloudCash cooperates with merchant offline selling smartphone to be point of sales financing which is safe, easy, and fast. As for the total merchant who have partnered a total of about 50 merchant located in Jabodetabek.

To expand its services, AwanTunai will partner with three banks for additional sources of funds and partner with small traders to large companies to improve its services to the entire community.