Nevertheless, he was still reluctant to mention the number of funds and who the investors would be. “I’ll let you know next time. This funding will be used for expansion throughout Indonesia. After Java and Sulawesi, Sumatra, Bali, Nusa Tenggara, also Kalimantan will be the target,” Wenas explained.
Previously, Amartha had received Series-A funding in 2017 led by Mandiri Capital Indonesia, a subsidiary of PT Bank Mandiri (Persero) Tbk. Participating in the funding was Lynx Asia Partners, Beenext, and Midplaza Holding. In terms of Beenext and Midplaza, they were Amartha’s preceding investors.
Nevertheless, Wenas said that the latest funding had nothing to do with the permit status that the startup had obtained from the regulator. This is because the deal from this funding is only one month away since the permission obtained from the Financial Security Agent (OJK).
After being registered with the OJK since May 31, 2017, Amartha received a permanent permit for P2P lending from the regulator on May 31, 2019. Now Amartha has become one of 13 P2P lending businesses that have obtained permits out of 127 P2P lendings registered at OJK.
Wenas said that typically, technology startups focus on two things: business growth and profitability. Profitability is reflected in the value of startup valuations. He stated that it was difficult for fin-tech to focus on these two things. However, Amartha focuses on both of them.
“Amartha itself focuses on both. The initial stage must be healthy first. That’s what makes Amartha different. So, from the beginning, from 2010 to 2015, we have a conventional business, namely cooperatives. Then in 2016, our Founder Taufan saw the opportunity to use technology to become a fin-tech,” Wenas explained.
For information, Amartha now has channeled loans worth IDR 1.47 trillion since its inception. The loan has been distributed to 311,783 female borrowers. The ultra-micro loans have a 90-day success rate of repayment at 99.17%. This means only 0.83% of the total loans do not return to lenders.
Recently, Amartha also received an award as a financial services company that has an impact on improving the welfare of the community and supporting the Sustainable Development Goals (SDGs), which are poverty alleviation. The award was initiated by UNDP, EPFL, Orange, and SAP.
The award aims to identify companies that fall into the category of Growth Stage Impact Ventures (GSIV). The companies should not only focus on customers, but they also need to provide products and services that will help people achieve their development potential.
Amartha became the only fin-tech company from Southeast Asia that was chosen as a finalist along with 11 other developing countries around the world. There are three fin-tech companies from India, Mexico, and Somalia/Peru that became Amartha’s competitors in the Financial Services category.
Previously, the 2019 SDG Finance Geneva Summit has succeeded in gathering 119 SDGs program proposals on access to health, climate energy, and financial services from companies that have received minimal Series-A funding in 40 developing countries from around the world.
Amartha Fintek was selected as a peer-to-peer lending fin-tech from Southeast Asia because it has succeeded in reducing the poverty rate of women in their partner villages by 22 percent in the last two years. This was faster than the reduction in the national poverty rate.