KoinWorks, one of Indonesia’s largest financial platforms, has raised US $108 million in a Series C round headed by MDI Ventures, Telkom Indonesia’s corporate venture capital arm.
Participants included Quona Capital, Triodos Investment Management, Saison Capital, AC Ventures, and East Ventures.
The funds will be used to grow KoinWorks’ solutions and hire 400 additional workers internationally, including $43 million in equity and $65 million in borrowed financing.
MSMEs account for roughly 62 million people in Indonesia. It is estimated to have a gross merchandise value of US $70 billion this year, and that figure will more than quadruple by 2025. They are, however, having difficulty obtaining funding.
“KoinWorks is here to democratize access to finance and debunk the myth that it’s only for a specific class of entrepreneurs. KoinWorks has shown that opening the doors to capital and providing educational tools helps SMEs grow their sales,” said Benedicto Haryono, CEO and Co-Founder of KoinWorks.
KoinWorks began as a peer-to-peer lending platform in 2016, with the objective of assisting people from all walks of life in Indonesia in attaining their financial goals. KoinWorks, which focuses on underserved and underbanked areas, offers MSME owners and freelancers a range of solutions ranging from neo banking to lending and productivity tools to help them start and develop their businesses.
Accounting software, POS, e-commerce, HRMS for SME, and a budgeting app are among the integrated apps available on the platform. Working capital, invoice factoring, early wage access, and treasury management are among KoinWorks’ standard offerings.
During COVID-19, the company claims to have increased its user base to over 1.5 million.
The firm is based in Jakarta and has tech offices in Yogyakarta, India, and Vietnam. It also has a holding company in Singapore.
KoinWorks received $10 million from Lendable in May 2020, following a US $20 million loan and equity investment from Quona Capital a month prior.
