Indonesian fintech Cermati raises Series B from conglomerate Djarum

Photo: Cermati's Facebook page

By Ardi Wirdana

September 6, 2018

Indonesian financial product marketplace Cermati has closed an undisclosed amount of Series B funding from Indonesian conglomerate Djarum Group which has seen existing venture investors exiting the startup.

In an official release, Cermati said the new capital injection from Djarum will be used to expand its reach in Indonesia and develop new product lines to increase the financial product penetration in Indonesia.

“Our mission is to advance Indonesia through financial inclusion. We believe that access to financial services can improve Indonesian life; Djarum shares the same mission and we are excited to work together with them,” said Cermati co-founer and CEO Andhy Koesnandar.

Cermati provides an online platform that helps customers research and buy credit cards, auto loans, personal loans and mortgages. It has recently broadened its offering into ID verification and underwriting of micro loans and insurance products.

With a customer base of over one million, it claims to have become the most visited financial e-commerce site in Indonesia.

Cermati last raised a funding in early 2017, securing a seven-digit US dollar Series A+ from Orange Growth Capital (OGC). It previously raised $1.9 million in an East Venture-led Series A round which included East Ventures, Beenos Plaza, and Finch Capital.

Prior to the announcement of fresh funding, Finch Capital had disclosed the sale of its minority stake in Cermati to Djarum, claiming an IRR of over 100 per cent and earned a return on capital of 2.7x from the exit.

Djarum Group is run by the Hartono family, regarded as the richest family in Indonesia.  The group is regarded among the pioneers in Indonesia’s tech investment space, having set up its VC arm GDP Ventures in 2010.

GDP has invested media, commerce, and digital communities. Its most notable investments include online community Kaskus and e-commerce site BliBli, through which Djarum made the investment in Indonesia’s first unicorn Go-Jek.

Citing information by industry sources, this portal in June reported that Cermati was in the process of being acquired by a regional tech giant, citing information by sources aware of the development. At the time, the sources said they believed the acquirer to be Chinese giant Alibaba.

The startup was understood to have been in talks with around six investors to raise a Series B funding of around $8 million. However, the fundraising process was abruptly ended after the regional powerhouse evinced interest in investing in Cermati.

Also Read:

Indonesia’s Djarum Group buys Finch Capital stake in fintech startup Cermati

Indonesia: Go-Jek, Djarum, Mensa invest undisclosed amount in HaloDoc

Indonesia: Cermati closes Series A extension from Orange Growth Capital

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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