Earning IDR 1.4 Trillion, LinkAja Acquires iGrow Fintech Lending-Borrowing
A payment technology company (fintech), LinkAja, acquired a similar startup in the lending sector, iGrow. This corporate action was carried out after LinkAja received series B funding of more than US$ 100 million or around IDR 1.4 trillion.
LinkAja President Director Haryati Lawidjaja said it was aimed at expanding business lines to online loans, especially for productive sectors such as Micro, Small, and Medium Enterprises (MSMEs).
“This is LinkAja’s real step in providing easy access to finance and economy, especially for the lower middle class, as well as MSMEs,” he said in a press release, Friday (30/4).
With a network of ecosystems in various regions outside Java, as well as city-level (tier) two and three, LinkAja focuses on providing equal access to finance for MSMEs. “So far, (loans to MSMEs) are still focused on Java and tier 1 cities,” he said.
Therefore, Haryati hopes that the expansion of the business line to finance can have a positive impact on the resilience and progress of the MSME business, especially during the COVID-19 pandemic.
LinkAja Believes iGrow has the Same Vision to Advance MSMEs
He believes that iGrow is the right partner because it has a similar vision and mission in improving welfare and supporting the lower middle segment.
Director of Business Development of PT iGrow Resource Indonesia (iGrow) Jim Oklahoma assessed that LinkAja is a company that has strong business fundamentals.
Moreover, it is supported by shareholders of State-Owned Enterprises (BUMN) and large technology companies.
“This will accelerate the vision and mission of iGrow to have an impact on MSMEs and can make the company one of the main players in the financing sector for the productive sector,” he said.
Currently, LinkAja has more than 68 million registered users. In addition, it has more than one million local merchants, 370 thousand national partners, 230 modes of transportation, 680 traditional markets, 44 thousand digital donation partners, and six thousand online marketplaces.
LinkAja can also be used at more than one million transaction points for topping up and withdrawing balances, which include ATMs, banking transfers, retail networks, to digital financial services.
The red-plate company also launched its Sharia LinkAja service in April 2020. This is claimed to be the first and only Islamic electronic money in Indonesia. A year since its launch, LinkAja’s Syariah service has more than 2.6 million registered users.
Previously, iGrow Collaborated with BCA
PT Bank Central Asia Tbk (BCA) is partnering with an electronic-based fintech peer-to-peer (P2P) lending organization targeting the agricultural sector, PT iGrow Resources Indonesia (iGrow) to distribute people’s business credit (KUR) with a ceiling of up to IDR 200 million.
The signing of the cooperation agreement was carried out by BCA SVP Commercial & SME Business Elvriawati Tumewah and Chief Business Development Officer of iGrow Jim Oklahoma, on Friday (19/02/2021) virtually.
This collaboration demonstrates BCA’s commitment to support the agricultural sector as a driving force for the Indonesian economy, as well as BCA’s efforts to expand the market in the digital segment.
Freddy Iman, EVP Commercial & SME Business of BCA, said that BCA sees that Indonesian farmers need support from banks in the midst of a pandemic because this sector is one of the pillars of Indonesia’s food stability.
To increase production, later the farmers can apply for People’s Business Credit (KUR) through the application via cellphone. This support will be facilitated by iGrow as a leading fintech in the agribusiness sector which has a large portfolio and has a broad understanding of agribusiness.
“Later, through this collaboration, BCA can finance farmers all over the archipelago without any distance constraints,” he said in an official statement.
The channeling scheme in this collaboration will include cooperation in providing credit facilities in the form of Micro KUR and Small KUR.
BCA and iGrow will also provide relief for debtors, namely in the absence of collateral and not being charged any fees for applying for credit.