Indonesia Digest: Kredivo, Moka pact; InfraDigital seed round; Migo faces hurdle

In some of the latest development in Indonesia’s startup scene, fintech startup Kredivo announced a partnership with point-of-sale app operator Moka, while school payments company InfraDigital secured an undisclosed amount of seed funding. Also, e-bike sharing startup Migo is facing regulatory challenges just a few months after its launch.

Kredivo teams up with Moka

Digital credit card Kredivo has announced a partnership with point-of-sale app operator Moka to enable consumers to make credit-based purchases offline.

Operated by fintech company FinAccel, Kredivo functions like a digital credit card, enabling consumers without a credit card to shop online on credit and pay later in instalments, while Moka provides an end-to-end POS and payment solution that caters to small and medium businesses in Indonesia.

The partnership will allow consumers to pay for offline purchases using Kredivo digital cards in retail stores that use Moka’s M-POS devices, as stated in a joint statement.

According to Finaccel CEO Akshay Garg, the collaboration is a strategic move for both companies. Moka will be able to leverage Kredivo’s retail credit infrastructure, while Kredivo can take advantage of Moka’s digital payment infrastructure.

InfraDigital bags seed funding

Indonesia-based school payments company InfraDigital has secured an undisclosed amount of seed funding in a round led by Appworks Ventures.

Other investors participating in the round include Fenox Ventures and angel investors from the Xoogler Angel Syndicate and Mercari, the startup said in a statement.

Founded in early 2018, InfraDigital provides a platform that is used by school administration teams to record and manage cashless school fee collection. It accomplishes this through digital invoicing and digital payments, the latter through a network on partners that include Indonesia’s largest banks and payment applications.

The company, which is a graduate of the GNB accelerator programme, has worked with over 90 schools, universities, learning centres and religious boarding schools (Pesantren) across Java. In 2018, InfraDigital assisted schools to optimise Rp24 billion of accounts receivables from over 20,000 students.

The fresh capital will be used to focus on delivering new features to schools, expanding its network of payments partners and improving reach to educational institutions.

e-bike sharing app Migo faces regulatory hurdle

Indonesian e-bike sharing startup Migo is facing regulatory challenges just a few months after its launch, as authorities struggle to determine the legal classification of electric motors, according to local media.

Migo, which claims to be the country’s first e-bike sharing app, enables users to rent a motorbike from a station and return the vehicle after using it.  It currently has more than 1,100 bikes with 200 pick-up and drop-off points.

The bikes Migo rent out seen as a hybrid between an electric bike and a conventional motorbike. The vehicles have bike pedals but are designed to resemble a small motorcycle.

The startup’s operation poses a legal problem for the authorities as Indonesia does not have specific traffic rules regarding electric bikes. The country’s transportation ministry has suggested a temporary freeze on Migo, as it reviews its regulation for electric bikes.

The Indonesian police has reportedly banned Migo vehicles using Jakarta’s highway.