KoinWorks boasts of catering to around 400,000 individual and small-medium enterprise users on its platform. (Photo courtesy of KoinWorks)
KoinWorks Closes Deal on $20m Funding Round Amid Covid-19 Pandemic
APRIL 14, 2020
Jakarta. Lunaria Annua Teknologi, the company behind one of Indonesia's largest peer-to-peer lending company KoinWorks, has secured a total of $20 million in new debt and equity capital to strengthen support for lenders and borrowers in the country during the coronavirus pandemic, the company announced on Monday.
KoinWorks' first convertible note has secured backing from the company's existing investors, which include Quona Capital, Sinar Mas-backed EV Growth and Saison Capital.
"As an institution with the protection of our lenders' capital at our core, being well-capitalized is always a top priority," Willy Arifin, KoinWorks's executive chairman and co-founder, said in a statement on Monday.
"KoinWorks continues to stand together with many major financial institutions and hundreds of thousands of retail lenders to support digital SMEs during the Covid-19 pandemic," Willy said.
The company boasts of catering to around 400,000 individual and small-medium enterprise users on its platform.
Before the pandemic began, it had expected to increase loan disbursement on the platform to Rp 3 trillion ($192 billion) per month this year from Rp 650 million per month last year.
Aside from the convertible note, KoinWorks has also struck a deal with Dutch lender Triodos Bank for new credit facilities.
Under the agreement, Triodos Bank would underwrite loans disbursed on the KoinWorks platform.
"These investments, especially during these turbulent times, show tremendous confidence in our abilities as best-in-class loan originators in the fintech space in Indonesia," Benedicto Haryono, KoinWorks's chief executive officer, said in the statement.
"We are very pleased to have new and internationally respected multiple institutions joining the existing investors behind us as we move forward," Benedicto said.
The chief executive officer said KoinWorks was confident in combining digital data and traditional, proven banking techniques to maintain its lending quality during the pandemic.
The platform reported less than 1 percent bad loans, far below the average of 2.5 percent among conventional banks in Indonesia.
"We feel confident we can support Indonesia as it makes its way through an economy transformed by Covid-19," Benedicto said.
KoinWorks was also part of Indonesia Pasti Bisa, a fundraising program initiated by Jakarta-based venture capital firm East Venture to produce 100,000 Covid-19 testing kits and support genetic research to make vaccine for the disease.