Other investors that joined the round include Gobi Partners, Convergence Ventures, Provident Capital, Central Capital Ventura, Heyokha Brothers and other strategic investors, Julo announced on Thursday.
The new round of funding comes only a year after Julo raised an undisclosed amount in a seed round, also led by Skystar Capital.
Founded in late 2016, Julo connects institutional lenders to the underbanked and unbanked and provides unsecured cash loans of up to Rp 10 million with a payback period of up to six months via a mobile app.
It allows loan applicants to carry out the process by simply submitting pictures of personal documents and then receive their loan within 24 hours upon successful verification. The platform also allows users to manage loans, due dates, and cashback bonuses with alerts and reminders to keep them on top of payments
The startup says it is now processing over ten thousand monthly applications with double-digit monthly disbursement growth rate since inception.
The funds raised from the latest round will be used to grow the company’s team and accelerate the growth of its loan portfolio.
“2018 is the year of execution and accelerated growth for Julo. We have ambitious goals this year including new product lines, nationwide expansion, and continued focus on our underlying technologies and analytics. This fund is key in enabling us to achieve those goals and furthering our mission of bringing financial inclusion to the Indonesian masses,” said Julo co-founder Adrianus Hitijahubessy.
Julo was founded by Hitijahubessy, along with two fellow Indonesian data scientists and engineers, Hans Sebastian and Victor Darmadi, who met during their tenure in Silicon Valley. The idea for Julo started when Hitijahubessy was building AI-based credit scoring solutions for Latin America and African countries.
Amid strong competition in the fintech lending industry in Indonesia, Julo says its differentiation lies in its implementation of a self-developed algorithm, which allows the startup to provide one of the lowest interest rates in the market for uncollateralized consumer loan while maintaining a low single-digit non-performing loan ratio.
The investment in Julo comes at a time when Indonesia is anticipating significant funding to be poured into its P2P lending players.
Modalku (Funding Societies) closed a Series B funding round last month, securing $25 million in what could perhaps be the largest financing round for a P2P lender in Southeast Asia.
A number of fellow P2P startups are expected to follow Modalku’s lead, with Amartha, Uangteman and Investree all confirming that they will also be raising a Series B funding this year.