Indonesia’s Mitrausaha launches peer-to-peer lending platform Modalku

Kelvin Teo and Reynold Wijaya, Founders of Modalku - Photo by Funding Societies

PT Mitrausaha Indonesia Group has launched a community Modalku which is facilitates peer-to-peer lending and funding platforms for borrowers and lenders.

According to Reynold Wijaya, chief executive and co-founder of Modalku, he had developed the platform, as a gathering place for borrowers and financiers.

“Modalku is a direct platform or borrowing market place (peer-to-peer lending/P2P) in Indonesia. This service is an alternative business of investment products based on digital, which will address the needs of SMEs through fast working capital loans with competitive interest rates,” Wijaya said.

Furthermore, he said that for capital service providers, this could be an ideal solution because they get a safe way alternative investment method with low risk, with a return of upto 18 per cent per year.

The services provides non-collateral loans with interest rates between 15 per cent and 20 per cent.

He added that the product is affordable for the middle class financiers. To become an investor, they are required to have deposit of at least Rp10 million ($719,424). Later, Raymond said, they are free to give investment to SMEs anywhere they desire.

He further explains that a homegrown marketplace for peer-to-peer lending, will give Indonesia’s small-and medium enterprises (SMEs) more access to funding.

Modalku’s service intends to fill the funding gap for businesses that may be eligible for a loan, however they are rejected by banks that typically demand collateral or a proven track record.

Modalku offers loans from Rp50 million to Rp 500 million with a tenor of three, six and 12 months. It claims to have the capability to disburse loans within 10 days. Meanwhile, individual lenders are expected to place at least Rp 1 million in funds.

Raymond said similar platform has been successfully developed in Singapore, called Funding Societies. He wants to replicate that in Indonesia.

Funding Societies is a P2P lending marketplace for SMEs to get loans to grow and investors to get good returns in Singapore.

“Since our launch in June, we have crowd-funded S$3 million in loans to 35 SMEs with 100 per cent repayment. We aspire to be the most trusted P2P lending marketplace in Southeast Asia,” Raymon said.

He believed, Singapore and Southeast Asia are ripe for innovation because there is a strong demand for alternative financing and investment, but limited supply and opportunity.

Also Read: Google picks 7 Indonesian startups for Launchpad Program in US

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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.

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.