Tokopedia and Modalku Release Fintech Product "Modal Toko"

Tokopedia and Modalku released the Modal Toko fintech product which is designed to make it easier for online merchants to obtain business capital loans in a short time and have high flexibility.

This announcement also completes a series of fintech products that have been launched by the company, namely Capital Loans and Store Capital. Modalku is one of the participating fintechs.

"Of Tokopedia there are six million merchants, 70% of them are first-time entrepreneur. This means that they do not have sufficient financial background and there are not many institutions that can help them," said Samuel Sentana, AVP Fintech at Tokopedia, Monday (22/7).

Co-Founder and CEO my capital Reynold Wijaya added, the partnership with Tokopedia is a way to expand access to affordable business loans for the sector underserved.

"It is important for us that small businesses that are potential, feasible, and responsible can develop capacity and expand."

This initiative was appreciated by the Director of Fintech Licensing and Supervision OJK Hendrikus Passagi. According to him, statistically, micro and credit businesses need many institutions that can help them disburse capital loans.

There are 60 million small and micro businesses operating in Indonesia. Its contribution to GDP is huge -- reaching 70%. The absorption of active labor is also quite large, up to 95% of all businesses.

"But sadly, there are only 16 million small and medium-sized business accounts in banks. Where are the others? This means that many institutions are needed that can channel loans to them," said Hendrikus.

Samuel explained, Modal Toko provides a capital loan of up to Rp. 300 million which can be withdrawn anytime and as much as needed, up to the fastest credit limit. The application is quite easy, just include an ID card without collateral.

Merchants who want to apply for loans can be new ones or have used Tokopedia for a long time. The difference is on the supply side -- the longer it goes, the more attractive the offer.

The loan approval process will take an average of one day. If it has been approved, the capital loan will go directly to Tokopedia's balance real-time and can be withdrawn immediately. The tenor is from 3 to 12 months with a low claimed interest rate and flat, without admin fees or other provisions.

Without going into details, Samuel claims that there have been tens of thousands of sellers who have used it since it was first introduced in April 2019. On average, the seller's income has increased by 50% and the number of orders has increased by 2,5 times.

In the future, the company will attract other fintech companies to have more choices for its online merchants.

"We are marketplace which always open with anyone, as long as they have the same vision and mission, sufficient technology, and have been regulated by the OJK," concluded Samuel.