Indonesian P2P lending firm Amartha has secured $50 million from the US-based lending platform Lendable to improve access to finance for women micro-entrepreneurs in the country.
Lendable is a debt provider to fintech companies across the frontier and emerging markets.
The $50-million facility is targeted to enable rural women micro-entrepreneurs to develop or start businesses and encourage post-pandemic economic recovery, according to a statement.
Amartha becomes the first company in Indonesia to receive funds under the 2X Challenge initiative, a programme focused on advancing gender equality and women’s economic empowerment.
Amartha founder and CEO Andi Taufan Garuda Putra said women are the drivers of the micro economy.
“Economically, Amartha has helped empower women since 2010, we are grateful for the trust given by Lendable to realise the 2X Challenge in Indonesia so that women can increase their role in the Indonesian economy, especially in the context of post-pandemic recovery,” he said.
Amartha estimates the segment of women micro-entrepreneurs who lack access to banking and financial institutions in Indonesia at over 22 million.
To date, Amartha has distributed funding of Rp3.16 trillion to 610,752 women micro-entrepreneurs in Java, Sumatra and Sulawesi. Established in 2010, Amartha provides access to women micro-entrepreneurs in rural areas who need working capital and connect them with lenders interested in making investments through its website.
“Amartha’s objectives very much align with Lendable’s commitment as a 2X eligible firm and our aim of supporting the unbanked and underbanked segments of society by providing debt to fintech that deliver crucial services,” Lendable chief investment officer Hani Ibrahim said.
Founded in 2015, Lendable provides commercial financing to fintech companies across Africa, Asia and Latin America including off-grid energy companies, MSME lenders, consumer lenders, and asset finance companies. Lendable has deployed over $100 million to fintech players that are enabling financial inclusion.