KoinWorks has received $10 million in funding from the United Kingdom-based lending platform Lendable, according to a recent announcement. One of several personal finance solutions, the fintech startup was established in 2015 and has emerged as Indonesia’s first peer-to-peer lending service.
In April, KoinWorks raised $20 million from Saison Capital, Quona Capital, and EV Growth. The $10 million investment from Lendable represents a substantial addition.
Founded in 2015, Lendable has invested over $50 million in African-based fintech companies. Its investments include asset finance firms, in addition to consumer and small business lenders. The KoinWorks deal marks Lendable’s first investment in Asia.
KoinWorks CFO Mark Bruny said that the company would use this money to strengthen small- and medium-sized digital businesses throughout Indonesia, which is an especially important goal during and in the immediate aftermath of the coronavirus pandemic. The investment demonstrates that it is still possible for fintech lenders to obtain capital and fund local companies that may be struggling amid the public health crisis.
KoinWorks helps to connect local lenders and borrowers as an alternative to more traditional forms of funding, such as that provided by major financial institutions. According to the company, it has financed more than 400,000 enterprises in Indonesia.
Moreover, it has played an important role in the response to the COVID-19 pandemic via Pasti Bisa, a fundraising program designed to support the mass production of testing kits and vaccine-oriented research. KoinWorks also maintains its own KoinDonasi program, through which it is raising funds for personal protective equipment.
A Closer Look at KoinWorks and Its Impact in Indonesia
KoinWorks’ mission is to expand financial access and to empower all people in Indonesia. While KoinWorks began as a peer-to-peer lending company, it has evolved into a full-stack financial solution that has been recognized as the country’s first super financial app. More than 300,000 personal and business users engage with the company and its solutions, which KoinWorks makes available through a single, centralized app with multiple capabilities. The company believes that providing a centralized location for financial data empowers people to make better financial decisions and obtain more control over their personal finances, whether via managing loans or tracking savings.
KoinWorks’ primary service is KoinP2P, a full peer-to-peer lending platform. The service facilitates lending and borrowing for small- and medium-sized enterprises, as well as individuals. By taking much of the guesswork out of this sort of lending and borrowing, KoinP2P instills confidence and makes financing options more widely available than they would be through more traditional routes. The service maintains a strong commitment to transparency and continues to build relationships with reputable partners. KoinP2P possesses several features that facilitate the entire process, such as credit scoring capabilities that help to classify overall risk. Moreover, each transaction is covered by insurance in order to protect all parties.
Another service that KoinWorks offers is KoinRobo, which uses machine learning to help customers create a more diversified investment portfolio. The algorithm learns from processing large amounts of data and then automates the allocation of funds based on individual customer preferences.
To help businesses, the company offers KoinBisnis, which allows businesses to access collateral-free financing within a single day. KoinWorks is committed to helping small businesses grow and understands the importance of making such funding available with lower interest and minimal fees. Affordable financing makes it possible for small- and medium-sized businesses to grow.
The Guiding Principles behind KoinWorks’ Growth
The additional funding from Lendable promises to help KoinWorks move closer to its goal of fueling business growth in Indonesia and making it easier for individuals to manage their wealth and achieve their financial objectives. One of the major guiding principles behind the company’s development is a commitment to innovation. KoinWorks’ founders are consistently looking for opportunities to improve the technology provided to customers and drive value for them. The company analyzes successes and shortcomings alike in order to identify new avenues for growth and ensure that the services offered continue to meet customers’ expectations while pushing the boundaries of what a fintech company can offer.
Another guiding principle behind KoinWorks’ growth is the belief in the ability to transform lives with a small loan and some financial guidance. The company aims to make a substantial social impact in Indonesia, particularly at a time when economic conditions around the world are uncertain. Loans can help dreams come true, provided they are administered in an empowering manner.
KoinWorks’ objectives and potential for disruptive impact in Indonesia and other countries around the world have attracted support from multiple financers. Alongside Lendable and the other aforementioned firms, Mandiri Capital, Gunung Sewu, and Convergence have all invested in the company.
