Indonesian peer-to-peer lending startup Akseleran has secured a commitment of around $2.5 million towards a targeted $7.5-million Series A funding round, which it expects to close this year, according to an official release.
While the release did not disclose the identity of the investors, Akseleran co-founder and CEO Ivan Nikolas Tambunan had told DEALSTREETASIA in December that around $2 million of the early commitment was secured from the company’s existing investors, including a New York-based family office and the parent company of local automotive and finance firm Bintraco Dharma.
He had also said that the Jakarta-based startup is currently in talks with regional and local VCs to raise the remaining $5 million, particularly with potential investors that have an affiliation with financial institutions or are fintech-focused.
The fresh funding, Tambunan said, will help the company scale up its operations and will also be used to disburse loans to the country’s SMEs.
Last year, the company claims it managed to disburse up to Rp 210 billion ($15 million) to 450 borrowers. For 2019, the company has set a target of disbursing Rp 1.2 trillion ($86 million) to over 2,000 borrowers.
In addition, Akseleran is also looking to expand its lender base this year, targeting to work with over 120,000 lenders, up from 56,000 last year.
Akseleran is a peer-to-peer lending platform that connects SMEs with a group of lenders. It has a mobile application called Auto-Invest through which lenders can determine loan criteria such as duration of loan and interest rates to cut down the time and hassle of selecting loan proposals from borrowers.
It had raised $1.85 million in its pre-Series A funding round at the start of 2018.
Founded in early 2017 by Tambunan and two other colleagues, Akseleran started out as a fintech startup employing an equity crowdfunding business model but later pivoted to a peer-to-peer lending model to comply with rules set by the Indonesian Financial Services Authority (OJK).
With around 65 per cent of its 250-million population still categorized as unbanked, Indonesia presents a huge opportunity for peer-to-peer lending startups.
The country’s crowded peer-to-peer space has attracted huge investment interest from venture capital firms. Among the peer-to-peer startups that have raised big money recently are Modalku, Koinworks and Investree.