Pinjam Indonesia secures seed, series A funding from local investor

Pinjam CEO Teguh Aribowo with Mandiri director Rico Usthavia Frans and Cashlez president director Teddy Lee. Photo by Antonia Timmerman

Jakarta-based B2C lending platform Pinjam.co.id  has secured an undisclosed amount of both seed and series A funding from an unnamed local investor. The company will use the funds to hire talent, develop technology, products, mobile apps, as well as to expand throughout Java and Bali.

Pinjam CEO and founder Teguh Ariwibowo said, the agreement would be signed this month. Pinjam provides digital pawning services. It went live in April 2015 to serve a number of pilot transactions, and was officially launched in December.

 “2016 is our expansion year. We chose a local investor, of course, because we want this to be a 100 per cent local venture,” Ariwibowo told DEALSTREETASIA on the sidelines of the Indonesia Fintech Forum in Jakarta.

The project was initiated by Ariwibowo after he failed to get a bank loan for his company. Having experienced first-hand the nightmare of getting a credit for small and medium businesses, he decided to establish Pinjam to help other SMEs or individuals get access to capital.

On the Pinjam website, a customer can upload photos of his collateral online. An automated bot will then give a price estimation, and the customer can carry the collateral directly to the nearest branch or have a courier pick it up. Once the price is agreed upon, funds will be transferred to the customer’s account within hours. Interest rate on Pinjam is 0.7 per cent per week with a maximum tenure of 12 weeks.

After only eight months since operations, Pinjam has recorded about Rp2 billion worth of transactions. Ariwbowo further said, the company had secured a partnership with a corporate lender who agreed to disburse up to Rp 100 billion this year. Income from the disbursed loans will be divided among Pinjam and the corporation, or known as the fee based income partnership deal.

“We only have one corporate lender so far because current regulation restricts us from pulling funds from multiple parties. We are not a bank,” Ariwibowo explained.

The Indonesian Financial Services Authority (OJK) has repeatedly said it would come up with comprehensive rules to regulate fintech, a still relatively alien industry in Indonesia. Currently, fintech startups do not clearly fall under the purview of any single authority. While technology startups are regulated by the communication ministry, those engaged in financial services are governed by the OJK.

Also Read: Indonesia to launch fintech regulations by end 2016

Among the several sets of rules that OJK has been mulling over is a plan to give licence to companies that have a minimum capital of Rp50 billion.

“Raising barrier to entry to a higher level is definitely needed. But I also want to highlight the need for regulations to protect customers’ data,” he said.

Fifty per cent of Pinjam’s customers are small and medium businesses, while the remaining are individuals. Pinjam’s credit default rate is about one to two per cent, however, the non performing loan (NPL) is maintained at zero per cent.

Also Read:

Fintech here to complement banks not compete, Indonesia startups say

Exclusive: Indonesia P2P lending startup Investree to raise Series A from Kejora

Exclusive: Indonesian online payment co DavestPay targets $5m in year-end funding round

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.