Indonesia’s Modalku gets debt funding from Triodos Investment Management

Reynold Wijaya (left) and Kelvin Teo (right), Co-Founders of Funding Societies

Modalku, an Indonesian peer-to-peer (P2P) lending platform, has raised an undisclosed amount in debt funding from global impact investor Triodos Investment Management, the company said in a statement.

The transaction has been routed through Triodos Microfinance Fund and Triodos Fair Share Fund, financial inclusion funds managed by Triodos Investment Management.

Modalku will use the proceeds to widen its credit access for micro, small, and medium enterprises (MSMEs) in a bid to promote financial inclusion in the region.

“The funding from Triodos Investment Management marks a new milestone for us…going forward, we want to reach far more MSMEs. We believe that expanding credit access will not only drive MSME growth but also benefit the economy and our societies,” Modalku co-founder and CEO Reynold Wijaya said in a statement.

With around 63 million businesses, potential in the Indonesian MSME market is enormous. However, according to a study conducted by financial consultant firm PwC, as much as 74 per cent of the MSMEs still don’t have adequate access to financing.

Established in 2016, Modalku connects creditworthy but unbanked MSMEs in Southeast Asia with retail and institutional lenders. The startup, which enables fast working capital loans and competitive interest rates, also operates in Singapore and Malaysia, under the name, Funding Societies.

Funding Societies has provided loan of around EUR 650 million to more than 1.1 million MSMEs across Southeast Asia.

Triodos Investment Management, which is a subsidiary of Netherland-based sustainable bank Triodos Bank NV, has provided capital to host of financial institutions across the globe, with an investment portfolio of over EUR 900 million.

In 2016, Modalku had raised $1.2 million from Alpha JWC Ventures and a number of undisclosed foreign venture capital investors. Recently, Modalku invested in Indonesian SaaS startup Paper.id.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.