Indonesian peer-to-peer lending platform KoinWorks has raised 170 billion rupiah ($12.01 million) in an oversubscribed Series B round co-led by EV Growth Fund and Quona Capital.
The financing was joined by the company’s existing investors, it said in a statement.
Established in 2016 by co-founders Benedicto Haryono and Willy Arifin, KoinWorks’ online platform connects borrowers and lenders to provide financing for SMEs, who have largely remained underserved by traditional financial institutions. In addition to business financing and invoice financing, the startup provides borrowers with access to low-interest loans.
“When we started KoinWorks, we set out to democratize finance in Indonesia while fostering financial inclusion,” said co-founder and executive chairman Willy Arifin.
KoinWorks will use the latest capital infusion to expand its team and partnerships, and to further develop systems and technology.
“The gap between access and convenience in providing investment products and loans makes KoinWorks a very unique fintech in Indonesia,” said EV Growth partner Willson Cuaca.
EV Growth is a $200-million joint fund between East Ventures, Sinar Mas Digital Ventures (SMDV) and Yahoo! Japan. The VC firm seeks to invest in growth-stage startups in Southeast Asia, primarily focusing on Indonesia. Startups it has backed so far include Sociolla, IDN Media, Moka, Warung Pintar and Ruangguru.
“We’ve been impressed by the company’s rapid growth. KoinWorks shares Quona’s mission of financial inclusion, and has had a dramatic impact on businesses in Indonesia as a result of their commitment to responsible lending,” said Ganesh Rengaswamy, co-founder and partner at Quona Capital.
VC firm Quona Capital is focused on fintech for inclusion in emerging markets and has a strategic relationship with global non-profit Accion. To date, it has supported more than 25 fintech companies in Latin America, South and Southeast Asia, and Sub-Saharan Africa.
KoinWorks had previously raised a $16.5-million Series A round in 2018 from Mandiri Capital Indonesia, Convergence Ventures, Gunung Sewu and Quona Capital.