The Swiss asset management responsAbility Investments has invested $10 million in Investree, an Indonesian digital financing platform for SMEs.
Accial Capital, a fintech-focused investor, also participated in the round as an institutional Lender on Investree’s platform, partnering with responsAbility.
The money will be used by Jakarta-based Investree to finance its borrowers’ (MSMEs) initiatives that have major economic, social, and environmental benefits on life, particularly throughout the pandemic’s recovery period.
Investree was founded in 2016 with the goal of making loans more inexpensive and accessible to MSMEs via the use of technology and data.
Investree, a corporation licenced by the Financial Services Authority of Indonesia (OJK), specialises in supply chain finance, with an emphasis on client acquisition through an ecosystem of big and respected payors.
In the Gramindo ecosystem, one of the finest uses of Investree is to give business loans to unbankable women. Gramindo is an Indonesian savings and loan cooperative that specialises in super-micro finance.
In addition to the United States, Investree has a presence in the Philippines.
Small businesses, according to the International Finance Corporation (IFC), lack easy and quick access to financial services that might help them develop. According to the IFC, 65 million enterprises in developing countries, or 40% of formal MSMEs, have an unmet funding demand of US $5.2 trillion per year, which is 1.4 times the present level of global MSME lending.
The epidemic adds to the mix, making it more difficult to eradicate poverty and provide employment to accommodate the rising workforce.
“The credit provided by the investment partnership is also timely because we, through our digital solutions, continue to support SMEs in the country to survive, recover, and grow stronger in going through the difficult times caused by the pandemic,” said Investree co-founder and CEO Adrian Gunadi.
