P2P Fintech Platform KoinWorks Closes US$20M Fundraise

koinworks

The funding comprises fresh debt, and equity from existing investors

Fintech lending platform KoinWorks, based in Indonesia, announced that it has raised funds to the tune of US$20 million through a statement on its company blog.

The funding consists of fresh debt from Dutch bank Triodos, and equity from existing investors: venture capital firms Quona Capital, EV Growth (a joint venture between East Ventures, SMDV, and YJ Capital), and Saison Capital (Japanese financial services provider Credit Saison’s venture capital wing).

Quona Capital and EV Growth previously led KoinWorks’ $12 million Series B round in June last year. The fintech platform also raised $1.4 million from Saison Capital in November during the same year.

About Triodos Bank joining KoinWorks’ list of backers, CEO & Co-Founder of KoinWorks Benedicto Haryono said in the statement, “Investment from Triodos, especially during turbulent times like now, shows extraordinary confidence in our ability as the best loan provider in the Indonesian fintech class.”

KoinWorks is an ISO certified peer-to-peer online lending platform for small and medium sized businesses based in Indonesia.

The platform has a headcount of 400,000 users, with six lenders for every borrower, Haryono said in a recent interview with Jakarta Globe. The company aims to turbocharge the volume of loans disbursed via its platform, from IDR 650 million (over $40,000) per month last year to IDR 3 trillion (about $190 million) per month.

The funding will be directed towards financing loans on the KoinWorks platform, the statement mentioned.

“As an institution that prioritizes protection for lenders, being a well-capitalized company is our priority,” Willy Arifin, KoinWorks Executive Chairman & Co-Founder, said in the statement.

The COVID-19 pandemic has rocked financial sector enterprises worldwide. Owing to the outbreak, the startup is relying heavily on digital data-backed banking techniques to maintain loan quality, the statement noted.

“We feel confident that we can help Indonesia amid economic changes due to COVID-19,” Haryono said in the statement.

Additionally, in a localized combative move against COVID-19, the startup has joined early stage venture capital firm East Venture’s initiative Indonesia Sure Can, through its fundraising program KoinDonasi.

KoinDonasi is a fundraising measure that is aimed to facilitate the production of 100,000 locally developed COVID-19 test kits, and also fund research for the development of a COVID-19 vaccine.

The statement noted that KoinWorks “continues to stand hand in hand with a variety of large financial institutions and hundreds of thousands of retail funders to support digital SMEs during COVID-19 outbreak.”

Header image by Fullvector on Freepik

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