Modalku, the largest digital lending platform in Indonesia, today announced sealing a $40 million series C funding. The round was participated by its existing investors and new ones whose names can't be disclosed yet. Modalku will use the fund to realize its vision in increasing financial inclusion in Southeast Asia, as well as creating positive impact toward Indonesian economy-particularly by reaching more SMEs.
To help SMEs which business are impacted by COVID-19, Modalku is allocating some portion of the funding to offer restructuring to borrowers, and enhance innovations to sectors in need such as those in health care sector. Although so far, only less than 1% of active borrowers has applied for restructuring to Modalku.
The funding will also be used to support improve user experience and benefits from Modalku users - both borrowers and lenders. The company will also provide adjustment on certain loans and make sure that lenders are not impacted by the pandemic.
Modalku was cofounded by CEO Reynold Wijaya and COO Iwan Kurniawan in 2016, as a peer-to-peer lending platform between SMEs and individuals and institutions. The company operates in Singapore and Malaysia by the name Funding Societies. So far, Modalku Group has disbursed more than Rp 14 trillion to SMEs in these three countries, where Indonesia contributes approximately 60% of total loan disbursement.
Previously, Modalku secured a $25 million series B funding in 2018 from SoftBank Ventures Korea, Sequoia India, Alpha JWC Ventures, and Golden Gate Ventures.