Targeting UMKM, Fintech Investree and Modalku Are Investing in Startups
Now the peer to peer (P2P) lending business is not only targeting lending or organic growth, but also targeting the acquisition of a company or inorganic growth. For example, PT Investree Radhika Jaya acquired a startup stock which is engaged in the e-procurement of PT Big Ecommerce Bersama (Mbiz).
Investree Co-Founder & CEO Adrian Gunadi said he would bring Mbiz to the Philippines market. Mbiz, which is engaged in the e-procurement business, will be implemented by Investree when entering the Philippines in early 2020.
“This is our first step into UKM financing infrastructure. We have prepared our business plan in 2020, we will invest in some infrastructure that supports supply chain financing. Not only in Indonesia but also in Southeast Asia, “Adrian said in Jakarta on Friday (12/27).
He continued, Investree had seen several partners to be acquired. But in detail, he did not want to explain the name of the startup where the UKM ecosystem. But he mentioned the start-up forms to be invested such as e-procurement and logistics.
Investree Acquires Mbiz to Access Loans Wider for UMKM
The purpose of the acquisition of Mbiz, so that Investree can provide loans for wider users. It also increases the speed of acquisition and quality assessment of prospective borrowers. Mbiz alone has more than 350 users from the company and more than 3,400 vendors.
“Investree’s strategy in 2020, there are several important infrastructure players who are UKM financial management. What and so on, I have not conveyed. Likewise, how many of them are there I can’t convey,” Adrian said.
Adrian stated the funds that will be used for this investment will also come from Series C funding that is being collected by P2P lending that has received a permit from OJK.
In addition, upon entering the Philippines, Investree will also acquire shares of local partners. He mentioned that the composition of Investree’s share ownership would not be decided because it was still in the final negotiation process.
By cooperating with this local partner, Investree entered the Philippines P2P lending market. He targets that by January 2020, this process will be completed and ready to operate.
Until the middle of December 2019, Investree managed to record a record total loan facility of Rp. 4.28 trillion and the value of loans channeled Rp. 3.19 trillion. The average rate of return reached 16.1% per year and the success rate of repayment of 90 days at the level of 99.25%.
Modalku Together with Golden Gate Venture Provides Series A Funding
PT Mitrausaha Indonesia Group (Modalku) together with Golden Gate Venture also provided series A funding to the Paper.id software as a service (Saas) startup. The fresh funds obtained will be used to develop its products in order to help millions of UMKM in Indonesia which are still not touched by digitalization.
“We cannot disclose the funding figures. The numbers are very good, a good number, the important thing is that these funds can be funding for Paper.id’s growth. The numbers are like Series A funding in general,” ModalkuCOO & Co-Founder, Iwan Kurniawan said.
Through this collaboration, Modalku can offer loans to UMKM partners who have joined Paper.id. Iwan stated that financing services differed from P2P lending and investment. He explained that investment is a corporate action.
“In my opinion, the product we want to make with Paper.id is not easy, even though it can integrate a lot of things. If there is a synergy, why don’t we try to invest,” Iwan added.
Until now, Modalku has disbursed loans worth Rp 11.32 trillion. The funding is channeled in Indonesia, Singapore, and Malaysia. The loan was channeled through 1.33 million loans. While the default level of Modalku is currently at a level of 1.3%.
The Indonesian Joint Funding Fintech Association (AFPI) predicts the trend of collaboration between P2P lending and other startups will be more widespread because P2P Lending wants to continue to increase the acquisition of borrowers.