P2P lender Amartha has secured funding while state-backed e-wallet LinkAja has acquired iGrow.
Amartha bags $28m led by Women’s World Banking
Indonesian peer-to-peer fintech startup Amartha has secured $28 million in fresh funding led by Women’s World Banking Capital Partners II alongside MDI Ventures. Existing investors such as Mandiri Capital Indonesia and UOB Venture Management also joined the round.
The Amartha deal marks WWB’s first investment in Southeast Asia. WWB Capital Partners II is the second gender-lens investment fund set up by Women’s World Banking, a global non-profit that has worked on women’s financial inclusion for over 40 years.
Amartha provides working capital loans – ranging from Rp 3 million ($200) to Rp 10 million ($700) – for women entrepreneurs in rural areas on the community-based (Grameen) model.
The funding will be used to strengthen its core community lending business, accelerate product innovations, and roll out additional services such as village digitization, group buying, warung loan, crowdfunding, among others.
To date, it claims to have disbursed over $240-million worth of loans to more than 660,000 women micro-entrepreneurs across 18,900 villages in Java, Sumatra, and Sulawesi.
LinkAja acquires P2P lender iGrow
Indonesia’s state-backed e-wallet LinkAja has acquired a fintech P2P lending, iGrow, for an undisclosed sum, according to the company’s statement. The acquisition aims to expand LinkAja’s online payments business targeting SMEs.
LinkAja CEO Haryati Lawidjaja said that the e-wallet seeks to expand its financing by giving easy financial access for people in the middle-to-low income group and SMEs.
Currently, LinkAja has around 68 million registered users, with over 1 million local merchants, and 370,000 national merchants, transportation vehicles, and 680 traditional markets.
LinkAja plans to expand the Islamic-based financial business and products, after it launched its sharia service in April 2020. It became the first and only sharia e-money in Indonesia. More than 2.6 million registered users have joined LinkAja’s sharia service.