Indonesia’s P2P lending firm JULO has secured $10 million in a Series A2 funding round led by early-stage venture capital firm Quona Capital, the company announced on Friday.
The round was joined by Skystar Capital, East Ventures, Provident Capital, Gobi Partners and Convergence Ventures.
With the latest funding, the company has now raised $15 million in its Series A round. Last year, it had secured $5 million in a Series A1 round led by Skystar Capital and East Ventures.
It had previously bagged an undisclosed amount of seed funding from Skystar Capital, East Ventures and Convergence Ventures.
Established in 2016, JULO offers loans of up to Rp 8 million ($570) at a 3-4 per cent monthly interest rate.
“Using these proceeds, JULO will focus on developing the business by expanding the team and continue to improve the quality of the company’s credit scoring system. We will also continue to focus on assisting the government in encouraging financial inclusion and continuing to provide the best for customers,” its co-founder and CEO Adrianus Hitijahubessy said.
JULO claims to have disbursed more than Rp 400 billion ($28.4 million) in cumulative loans to over 100,000 customers.
As of August this year, Indonesia’s financial services authority OJK has registered 128 fintech companies. The fintech boom in the country has been fuelled by businesses’ low access to traditional sources of capital. According to Bank Indonesia data, 70 per cent of the country’s 56.54 million businesses have not raised any capital from banks.
P2P lending firms in Indonesia offer higher interest rates compared to conventional banks or a government-run microcredit programme known as Kredit Usaha Rakyat (KUR), which charges around 7 per cent annually.
As of June this year, cumulative loans in Indonesia had reached Rp 44.8 trillion ($3.2 billion).
