Indonesia-based peer-to-peer (P2P) lender KoinWorks has bagged additional funding from venture capital firm Saison Capital to take the total corpus raised in Series B round to $13.6 million, according to an announcement.
In June, the company had secured $12.01 million funding in a Series B1 round led by Quona Capital and EV Growth.
The company did not specify if Saison Capital, the corporate venture arm of Japanese financial services firm Credit Saison, is the only investor in its Series B2 round.
Last week, Saison Capital had said in a statement that it has begun earmarking capital [for investment in startups]. Going forward, it plans to invest in 6-8 companies each year, wherein it’s looking to dole out cheques sizes of over $1 million.
According to data available with Cooperative Ministry, around 65 per cent of the Gross Domestic Product in Indonesia is contributed by SMEs and 92 per cent of these SMEs have been utilizing social networks to run their businesses.
“Ironically, many social commerce SMEs have obstacles in receiving a loan to grow their business due to limited documents, collateral and other business requirements needed by conventional financial institutions,” said Benedicto Haryono CEO & co-founder at KoinWorks in a statement.
The corpus raised will help KoinWorks develop better financial products in supporting digital SMEs, especially those in social commerce to access loans for their business development.
P2P lending firms in Indonesia are increasingly evincing investor interest. Firms that have recently secured funding in the sector include JULO, Akseleran and UangTeman, among others.