The new investors join Draper Associates (the venture capital firm of famed Silicon Valley investor, Tim Draper) and KDDI Open Innovation Fund, whose capital infusion into UangTeman in August last year made up the startup’s initial close of its Series B round.
The company said that, with the fresh capital at its disposal, its top priority is to focus on improving profitability metrics and financial performance.
Whilst loan book growth is an important metric to all lenders, UangTeman will deploy its new funds strategically to ensure that it achieves EBITDA profitability by the end of 2020.
In addition to a renewed focus on financial performance, UangTeman has been hiring senior executives to beef up its capacity to scale profitably and responsibly. UangTeman recently hired a veteran banker Masa Paskalis Lingga, who has 30 years of financial services experience as its deputy CEO.
“Whilst headline growth rate is sexy and will fetch high valuations, I believe that at the core of viability of every business, startup or otherwise, is its economic fundamentals and sustainability for the long-term. Therefore, we are grateful to have new partners who not only bring capital to the table but most importantly patience and a steady hand to guide us through both good and challenging times,” said UangTeman founder and CEO Aidil Zulkifli.
Concurrently with its equity fund-raising, UangTeman has also confirmed that it has entered into debt financing deals with several Indonesian financial institutions and lenders for consumer loan financing/refinancing on its platform.
The company says it is currently working towards closing a consumer financing debt facility with a European lender that is expected to close in end February 2020. This will be the company’s largest debt financing raise since establishment.
The company had previously announced plans to embark on a geographic expansion into the Philippines and has been in the process of obtaining a lending licence from the financial services regulators in the country.
“We are confident that UangTeman team will execute on their vision and have a massive impact on the Indonesian economy over the next few years. Our firm and our global corporate Limited Partnership (LP) network look forward to supporting UangTeman in their regional expansion,” said Pegasus Tech Ventures general partner and CEO Anis Uzzaman.
In Indonesia, UangTeman shares a space with a host of numerous P2P lending startups, several of whom have also raised significant amounts of capital from venture capital firms.
Among them are Koinworks, which raised a $12 million Series B last year from EV Growth and Quona Capital; Modalku, which last raised a $25 million led by SoftBank Ventures Asia; and SBI Holdings-backed Investree which is in the process of raising a Series C funding round.