Indonesia’s AwanTunai bags up to $20m debt facility led by Accial Capital

Indonesian currency Rupiah on hold by a cashier. Photo: Reuters

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.

The startup provides point-of-sale financing services and mobile-based consumer credit to micro-merchants, or warung grocery stores, by using merchant transaction data as an indicator of credit performance.
Indonesia has 60 million micro-merchants that rely on cash for doing business. Due to lack of data for formal credit underwriting and market fragmentation, these businesses are often unable to secure financing from traditional channels.

“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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.