Indonesian peer-to-peer startup UangTeman on Friday announced reaching the first close of a Series B funding round, for which it is raising $10 million in equity financing and an undisclosed amount in debt financing.
The startup expects to close the Series B round by the end of October 2019, it said in a statement.
The Series B1 funding was led by existing backer Draper Associates, with participation from new investors including KDDI Open Innovation Fund, a corporate venture capital unit of telecom operator KDDI Corporation, and Japanese fund manager Global Brain.
The first close of its Series B round comes after the company was granted a permanent online lending licence by the Indonesian Financial Service Authority (OJK) in May 2019.
UangTeman is one of the country’s seven P2P lenders given a permanent licence by OJK. Such licences are only issued to startups that meet the authority’s stringent standards of compliance which include ISO 27001:2013 certification IT security management, rigorous risk management frameworks, and funds segregation standards.
“We were ready to fund their Series B before they were granted the permanent license from OJK. This approval only solidified our thesis that UangTeman is poised to dominate the online lending industry in Indonesia, and eventually, globally,” said Draper Associates founder Tim Draper in a statement.
UangTeman has already secured commitments from investors for the final close of the round. The company confirmed that its Series B2 will be anchored by Japan-based VC firm Spiral Ventures.
“While we participated in the Series B funding round, we will make full use of our network, experience and capabilities to firmly support UangTeman’s sustainable growth,” said Spiral Ventures CEO Yuji Horiguchi.
With the license under its belt and fresh capital at its disposal, UangTeman plans to double down on growth within Indonesia. The company said it will be diversifying its lending book into micro-business lending through the acquisition of an undisclosed registered P2P lending platform engaged in invoice financing and payroll lending. The acquisition is set to close in September.
The company has also set its eyes on geographic expansion into the Philippines and is currently in the process of obtaining a lending licence from the financial services regulators in the country.
UangTeman’s last funding came in 2017 when it raised a $12-million Series A round led by K2 Venture Capital. The round was joined by Draper Associates and Hong Kong-based STI Financial Group.
The company says it intends to launch its Series C financing round in mid-2020 to fuel its further growth across Southeast Asia.