Indonesia Digest: UNDP forges partnership with 500 Startups; Modalku ties up with Zilingo

Photo courtesy: 500 Startups.

UNDP has teamed up with Silicon Valley-based venture capital firm and accelerator 500 Startups to invest in the burgeoning startup ecosystem in Indonesia. In a separate development, Modalku has partnered with fashion marketplace Zilingo to offer loan solutions to merchants.

UNDP teams up with 500 Startups

The United Nations Development Programme (UNDP) has teamed up with venture capital firm and accelerator 500 Startups to launch ImpactAim programme in Indonesia, the VC firm said in a statement.

The programme is aimed to boost social entrepreneurship in the archipelago as together the firms scout for investment opportunities in the region.

ImpactAim Indonesia will select 8-10 startups, which have either raised seed capital or have garnered funding beyond the seed stage. The startups will need to be aligned with the UN Sustainable Development Goals (SDGs).

Those selected will be a part of a 10-week programme in Jakarta, wherein they can showcase their businesses to investors across the world.

The programme “will open doors for many small enterprises particularly in Indonesia’s most disadvantaged regions…..we are going to make a real impact to improve people’s lives,” Resident Representative of UNDP in Indonesia Cristophe Bahuet said in a statement.

ImpactAIM program was first launched in Armenia in 2017.

Modalku ties up with Zilingo

Modalku, a peer-to-peer (P2P) lending platform, has collaborated with Singapore-based online fashion marketplace Zilingo to offer funding solutions to the latter’s merchants.

Through the partnership, Modalku will help with credit assessments using a comprehensive data analysis, which can provide more responsible loan structures. Meanwhile, for online merchants, the partnership will entail quick access to capital.

“Modalku supports MSMEs in a way to provide access to business capital loans,” Modalku CEO and co-founder Reynold Wijaya said.  “Our partnership with Zilingo has become a valuable opportunity to expand our market reach, not only in Indonesia but also in Singapore,” he said.

As one of Southeast Asia’s fastest-growing startups, Zilingo is touted to be valued at about $1 billion. The startup previously raised $226 million in Series D funding round in February from Sequoia Capital, Burda Principal Investments, Sofina, Temasek Holdings and EDBI.