AwanTunai, a Jakarta-based peer-to-peer (P2P) lending startup, has raised up to $20 million in a debt facility led by investor Accial Capital, it said in a statement on Monday.
“Our vision is affordable financing for the millions of underserved micro businesses that employ 90 per cent of Indonesia’s workforce. We collaborate with banks and funds that understand our transaction data-based risk management. Low-cost institutional capital accessing Indonesia’s vast unbanked and underbanked market is the way to achieve impact at scale,” said AwanTunai CEO Dino Setiawan in a statement.
“AwanTunai’s unique approach to managing credit risk in this segment sets it up well to scale quickly but responsibly, allowing thousands of micro-merchants to expand their businesses even during the COVID crisis,” said Michael Shum, Chief Investment Officer at Accial Capital. The impact-focused investor provides loans to small businesses in Latin America and Southeast Asia.
AwanTunai intends to use proceeds from the debt facility to expand its wholesaler supplier financing as well as AwanTempo, its flagship inventory purchase financing program. It secured a full fintech lending licence from Indonesia’s Financial Services Authority (OJK) in May 2020.
The firm had closed a $4.3 million Series A round in 2018 led by Insignia Ventures Partners and AMTD group. The round was joined by Global Brain, Fenox Venture Capital (now Pegasus Tech Ventures), and other affiliates.
Other Indonesian P2P lenders to have bagged debt facility from global investors include Jakarta-based KoinWorks, which secured $10 million from London-based debt provider Lendable in May this year.
Modalku also secured an undisclosed amount in debt financing from Dutch impact investor Triodos Microfinance Fund and Triodos Fair Share Fund.