Education-focused lending platform Pintek sealed an undisclosed amount of funding from U.S-based Accion Venture Lab. An extension to its pre-series A round, the fund will be used to expand its technology and platform - particularly to offer better services for underserved students and schools impacted by COVID-19 pandemic. Pintek has partnered with edtech platforms to provide schools with financing and access to remote learning platforms to help ease the transition to online learning. It is also launching a fundraising campaign to help furloughed teachers in Indonesia due to the pandemic.
“There is a clear need for educational financing in Indonesia, and Pintek’s unique model, strong leadership team, and promising growth potential make them the ideal partner to address that need. We’ve been particularly impressed with their quick response to the pandemic, finding new ways to help customers during this difficult time. We’re pleased to add them to the Venture Lab portfolio,” Vikas Raj, Managing Director of Accion Venture Lab, said in a statement.
Pintek was founded in 2018 by Tommy Yuwono and Ioann Fainsilber, who are president director and director, respectively. As a lending platform, Pintek works with institutional lenders such as banks, multi finances, family offices, and foundations, to provide affordable loans for students of all levels (kindergarten to post-graduate schools), as well as for schools in need of financing for infrastructure and operation. So far, Pintek partners with nearly 100 private schools, both formal and informal. Students who enrol in them can apply for student loans and have their tuition fees split for more manageable monthly payment.
By April, the company had disbursed nearly Rp 60 billion credits to almost 3,000 students across 26 provinces. Most of the borrowers come from higher education levels such as diploma and bachelor’s degree programs. Meanwhile, it has helped the financing of nearly 20 schools, which are usually allocated for short-term working capital - renovations and school supplies/equipment purchase, and recently for holding online classes as well. Tommy says that due to COVID-19 pandemic, more educational institutions are applying for loans, whereas interests from lenders are declining.
“We are determined to continue supporting the Indonesian government’s mission for education, throughout and beyond the challenges of the current pandemic. With ongoing stakeholder engagement, from parents to education partners, we strive to provide the best financial products to suit their needs and ensure that quality education is maintained. We also want to assure parents and the wider education community that Pintek is here and always ready to assist any financial needs for education,” cofounder and director of Pintek, Ioann Fainsilber said in a statement.
Tommy shares that Pintek plans to raise series A funding this year, but the company will have to wait and see due to the ongoing pandemic. Meanwhile, Pintek aims to grow its total borrowers by five times and partnering schools by ten times by the end of this year.
In November 2019, Global Founders Capital (GFC) led a pre-series A funding in Pintek. It was participated by Finch Capital and Amand Ventures, both of which had previously invested in Pintek’s seed funding, together with Japan-based venture capital Strive.