Financial technology (fintech) platform PT Investree Radhika Jaya has secured $23.5 million as the first tranche of its Series C funding round co-led by Mitsubishi UFJ Financial Group's unit, MUIP and BRI Ventures – the state-owned bank's investment arm. Existing investors, China's 9F Fintech Holdings Group and Japan's SBI Holdings, also participated in this round. The funding will be used to accelerate its business in Indonesia, Thailand, and the Philippines to support SMEs in the region and to strengthen its working capital.
"We are thankful the two notable lenders of Japan and Indonesia support our commitment to helping SMEs growth in Indonesia, the Philippines and Thailand, which currently have a credit gap of $430 billion," says Adrian Gunadi, CEO and cofounder of Investree in a statement. In addition, the new capital will help the company to support the country's SMEs affected by COVID-19.
Founded in 2015, Investree operates a lending marketplace for SMEs for both conventional and Shariah businesses. As of this month, Investree has booked a total loan of Rp5.11 trillion and has disbursed Rp3.83 trillion with an average return of 16% per annum.
Nicko Widjaja, CEO of BRI Ventures, believes the collaboration between BRI Ventures and Investree that has been running since 2018 can give a significant contribution towards Indonesia's economic growth. "We understand that the COVID-19 pandemic creates financial uncertainty for SMEs both in Indonesia or overseas. Yet, we strongly believe Investree can present in a strong position," he says.