1/8/2018 – Indonesian peer-to-peer (P2P) lending marketplace Investree today announced the closing of its Series B funding round, having raised an undisclosed sum.
The investment round was led by Japan-based SBI Holdings, followed by Persada Capital, Endeavor Catalyst, Mandiri Capital Indonesia, 9F Fintech Holdings Group, and existing backer Kejora Ventures.
Investree Co-founder and Chief Executive Officer Adrian Gunadi contributes the funding success to the startup’s detailed business plan which consists of operating expenses and acquisition strategy, but most importantly how it was executed.
Using the funds raised, Investree will improve the platform’s technology and product line, as well as marketing, talent acquisition and expanding into other markets in Southeast Asia.
According to Investree, the company is set to enter Thailand by December 2018 after having launched in Vietnam under the name eLoan earlier this year.
“Thailand has a demography model similar to Indonesia,” explained Gunadi. “There are still many SMEs that have not been served by the banking sector and this gives a huge potential for invoice financing.”
In its expansion strategy in Thailand, Investree will work with local partners to benefit from their in-depth understanding of market characteristics in Thailand and their relationship with local regulators.
“The support from investors who have credibility in building the digital economy ecosystem increasingly fosters our dedication in developing Investree’s products and services, helping SMEs get easy, fast, and transparent financing through financial technology,” he added.
Launched in October 2015, Investree connects lenders to borrowers, acting as a platform for those who want to invest their money to get returns and borrowers who seek funds for personal use or businesses. It offers “Invoice Financing” where borrowers pledged ongoing billing as a source of loan repayment.
Investree has 45,578 registered lenders between 21 to 40 years of age and has facilitated 1.04 trillion rupiah (about US$69 million) in loans to 2,256 borrowers. To date, the platform boasts a return rate of 16.6% with no defaults.
Over the past year, Investree has also launched a sharia-compliant product under the banner of Investree Syariah and has also been selected by the Indonesian Ministry of Finance as the only P2P lending provider to be an official government distribution partner for government bonds sale.
Kento Tokimori, SBI Holdings representative from the Jakarta office commented, “In midst of the development of fintech in Indonesia. we see a clear prospect for Investree and its business model of transparency.”
“We are also registered with the Financial Services Authority (OJK). The amount of funding that has been distributed through Investree becomes one of the proofs.”
“We are proud to be able to support the ideals of the Investree team in realising financial inclusion in Indonesia through the provision of technology-based financial services to provide loan solutions to SMEs,” Tokimori added.
Kejora Ventures, as an investor in the Series A round also has great confidence that Investree will be part of the growth of financial inclusion.
Kejora Ventures managing partner Eri Reksoprodjo said, “Kejora Ventures as an early investor of Investree is satisfied with its development and expansion plans in SEA.
“Besides supporting Indonesia’s financial inclusion, Investree has paved the way for small businesses to secure financing by utilising its digital platform, which is complementary to the conventional loan markets.”