Fintech KoinWorks Get Funding IDR 316 B despite Corona Pandemic
KoinWorks received funding of US$ 20 million or around IDR 316 billion. This financial financing technology startup (fintech lending) still gets investment, although some investors choose to watch and wait (wait and see) amid the corona pandemic.
Funding was obtained from Quona Capital, EV Growth, and Saison Capital, as well as other investors. “We are proud to announce the receipt of funding from various sources in the midst of challenging business situations,” Executive Chairman and Co-Founder of KoinWorks Willy Arifin was quoted as saying in a press release on Monday (13/4).
KoinWorks announced the receipt of funding that will be utilized through the fintech lending platform. One of the new credit facilities is obtained from a bank from the Netherlands, Triodos Bank.
CoinWorks CEO and Co-Founder Benedicto Haryono said the company would maintain loan quality as long as the coronavirus was endemic. Therefore, KoinWorks actively applies the process, which combines digital data with proven banking techniques.
“We feel confident that we can help Indonesia amid economic changes due to Covid-19,” Benedicto said. “We also remain standing side by side with various large financial institutions and hundreds of thousands of retail lenders to support digital SMEs during the corona pandemic.”
At present, several fintech lending studies are reviewing loan restructuring due to the corona pandemic. They include Modalku, Acceleration, UangTeman and Investree.
AFPI Has Encouraged Fintech to Mitigate Bad Credit Risk
Previously, the Indonesian Joint Funding Fintech Association (AFPI) encouraged fintech lending providers to mitigate the risk of a surge in bad loans. You do this by facilitating credit relaxation. Head of the Institutional and Public Relations Division of AFPI Tumbur Pardede said, one form of relaxation that could be facilitated by fintech lending with discounted interest and relief of late fines.
Interest discounts are charged to fintech lending, not lenders. Companies that bear interest discounts so that the value of the returns received by lenders remains or according to the contract. “Interest discounts such as the ‘burn money’ promotion strategy provided by the organizers (fintech lending). This is specifically for potential borrowers affected by co-19,” said Tumbur, some time ago (2/4).
The role of fintech P2P lending is vital in the corona pandemic situation (Covid-19), especially to meet additional capital requirements. Koinworks, for example, seeks to actively provide services with the availability of access that is seamless as well as contactless.
Koinworks Chief Financial Officer (CFO) Mark Bruny said, would accompany SME businesses who are experiencing difficulties during current economic changes.
“Koinworks will try to protect users by ensuring that the funds in KoinWorks remain safe. Consumer services will also continue to operate as usual to ensure the protection we provide to users, “he explained in a written statement, Tuesday (3/24).
The Company and other Fintech will Assist SMEs during the Pandemic
Koinworks and other fintech will be the gates in financial services for SMEs whose business continues to run amid changes in community behavior that have been adjusted to the government’s recommendations for social distancing as well as work from home.
Also, be aware, Koinworks has channeled funding directly from lenders in its efforts to support small and medium businesses.
“Users should not hesitate in using digital financial services, the most important thing is to ensure that the selected fintech have been licensed and overseen by the Financial Services Authority (OJK),” he added.
Mark also emphasized that the changes to Koinworks would operate as usual by completing funding to support MSMEs to keep going.
He added this was supported by partners from leading investment and banking companies such as Mandiri Capital Indonesia, Gungung Sewu, Convergence Venture, Quona Capital, EV Growth as well as Salson Capital.
“Koinworks has provided productive loans for digital SMEs with the completeness of the information that has been digitally verified. “It also helped Koinworks to maintain the default value of around 1%, lower than other fintech lending players,” he concluded.