Tokyo-based fintech company SBI Group has invested $6.3 million into Indonesian peer-to-peer lending startup Taralite, the firm announced today.
The financial terms were not disclosed.
The funds will be used to build a “world-class R&D team”, which would build an algorithm for Taralite’s future plan to be a “one-stop shop”. It plans to roll out new products such as insurance, revolving loan, and credit card services soon.
Taralite is one of Indonesia’s first fintech platforms. It started out by providing funds for personal use such as weddings. But now, it has evolved into a platform that disburses loans to online merchants, with interest rates starting from 0.99 per cent per month. Users can apply without providing collateral.
Since 2015, the firm has served more than 1,000 borrowers. The current default rate is 0.07 per cent. It also claims a customer retention of more than 70 per cent.
With new products in the pipeline, and through partnerships with e-commerce websites like Tokopedia, Lazada, Bukalapak, MatahariMall.com, and Airy Rooms, Taralite said it is now ready to expand its business.
“We are doing what Capital One and Ant Financial did a few years ago,” claimed Abraham Viktor, CEO of Taralite, in a statement.
“They expanded from just one product offering into a one-stop shop for the customers they are serving. We want to follow their footsteps and focus on serving the underserved segment in Indonesia,” he stated.
Taralite’s latest backer, SBI Group, holds Japan’s largest online securities brokerage company. It also pioneered fintech services in the country. Other than online securities trading, the group also has businesses in online banking, insurance, biotech, and venture capital investing.
SBI Group operates a total of $300 million of fintech-focused funds.