<article>The licence of P2P lender UangTeman has been revoked by Indonesia’s Financial Services Authority (OJK), while another P2P lender, Funding Societies (or Modalku), has announced a $16 million ESOP buyback programme for its employees.</article>

The licence of P2P lender UangTeman has been revoked by Indonesia’s Financial Services Authority (OJK), while another P2P lender, Funding Societies (or Modalku), has announced a $16 million ESOP buyback programme for its employees.
<h3>UangTeman loses online lending licence</h3>
The online lending licence of the Indonesian P2P lender UangTeman has been revoked, according to an announcement by the country&#8217;s Financial Services Authority (OJK).
UangTeman CEO Aidil Zulkifli declined to comment on the development. ”We are looking at the decision from OJK,” he told DealStreetAsia.
OJK&#8217;s Non-Bank Supervisory Department Head Bambang Budiawan explained that Uang Teman is in an unhealthy financial situation, reflected by its negative equity and zero lending disbursement. 
In October last year, UangTeman was sued for $1 million by Real Capital for defaulting on its loan obligations, according to a local court filing. Real Capital eventually withdrew the lawsuit.
The firm had stopped disbursing loans since end-2020 and focused on collecting the money it was owed.
In 2020, UangTeman closed its series B funding round raising $8.04 million. 
<h3>Modalku launchs $16m ESOP programme</h3>
P2P lender Funding Societies, also known as Modalku in Indonesia, has announced an ESOP programme worth $16 million. Previously, the company&#8217;s employees had cashed out on $3.5 million worth of ESOPs.
Under the scheme, eligible existing and former workers will have the option of selling their shares at no discount to Funding Societies at the preference share price. The shares will then be sold to new investors. The company claims this is in contrast to the common industry practice of companies buying back shares at a 20% discount.
Alternatively, the employees have the option to keep their ESOPs or convert them into Modalku shares and become stakeholders.
New employees joining Modalku are offered half of their annual compensation as ESOPs. To date, over 120 existing and former employees have received the company&#8217;s ESOPs.
Modalku had closed a Series C+ funding round of $144 million led by Softbank Vision Fund 2 in February this year.

Modalku's eligible staff will have the option of selling their shares at no discount to Funding Societies at the preference share price.

Indonesia Digest: UangTeman loses licence; Modalku announces $16m ESOP plan

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Indonesia Digest: UangTeman loses licence; Modalku announces $16m ESOP plan

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