Indonesia-based micro-lending site UangTeman – launched in April 2015 as part of leading fintech lending company PT Digital Alpha Group – has raised a pre-series A round of investment.
The firm did not disclose the quantum of funding or details on the investors.
The company only said that the round was led by an unnamed “major Southeast Asia banking group,” with participation from two other Indonesian institutional investment firms. It has also raised $735,000 in debt.
UangTeman provides short-term microloans to consumer and micro-businesses. It provides algorithmic-driven financing online, anywhere and anytime as an alternative to the model of the conventional lending banks or other finance companies.
Last month, UangTeman appointed Darmawan Zainin as its Chief Technology and Product Officer (CTPO), as it looks to scale its big data infrastructure and mobile unsecured lending capabilities in Indonesia.
Darmawan will be responsible for leading mobile lending research & development (R&D) and building an engineering and product team that is focused on optimising the digital lending experience for the consumer.
UangTeman has handed out more than $1.9 million in loans so far. In its seed stage, the company was backed by a crew of investors including Jakarta-based venture capital firm Alpha JWC, and a co-founder of Wonga, a British payday loan company similar to UangTeman.
Going forward, the firm is now looking to leverage further the data collected on its applicant and customer base, in order to optimise its micro-lending experience and to underwrite loans to segments of Indonesia which the banks and financial institutions traditionally do. The company is also adopting innovation for seamless loan applications and disbursement through mobile.