Fintech Startup Secures $27.5 Million Funding to Digitize Indonesian SMEs

Jakarta, Indonesia – AwanTunai, a leading Indonesian FinTech startup, has recently announced the successful closure of its Series B funding round, amassing an impressive $27.5 million. This significant financial milestone propels the Jakarta-based innovator beyond its initial $25 million target, showcasing strong investor confidence in its mission to digitize the nation’s small and medium enterprises (SMEs).

Investor Confidence and Strategic Partnerships

The round was spearheaded by a distinguished group of investors, including Norfund, the Norwegian government’s investment fund committed to developing countries, MUFG Innovation Partners (MUIP) – the corporate venture capital arm of Japan’s MUFG Bank, and OP FinnFund, a Finnish firm known for its impactful investments.

These partnerships not only inject substantial capital into AwanTunai but also bring a wealth of knowledge and global network, positioning the startup for accelerated growth and innovation in Indonesia’s burgeoning digital economy.

Revolutionizing Indonesia’s Cash Economy

Founded in 2017 by Dino Setiawan, alongside former Gojek executives Windy Natriavi and Rama Notowidigdo, AwanTunai has been at the forefront of transforming Indonesia’s traditional cash economy. Through its pioneering inventory purchase financing solutions, integrated with sophisticated online ordering and inventory management systems, AwanTunai is dedicated to equipping wholesalers and micro-merchants with the digital tools needed to thrive in a competitive market.

With the infusion of new funds, AwanTunai is set to enhance its equity base significantly. This strategic financial bolstering will facilitate the expansion of lending capital facilities, with the ambitious aim of supporting over $2 billion in annualized inventory purchase financing by year-end. This initiative marks a critical step in digitizing the Indonesian economy and providing substantial support to local businesses.

Impact on Traditional General Trade Sector

AwanTunai’s commitment to serving the traditional general trade sector, a segment that caters to 80% of the Indonesian population’s daily needs, has enabled the company to scale its operations effectively. By focusing on this sector, AwanTunai avoids the pitfalls of over-diversification, ensuring that its resources are optimally utilized to meet the specific needs of this vast market.

Looking Ahead: Expansion and Profitability

In a detailed interview with DealStreetAsia, AwanTunai’s CEO and founder, Dino Setiawan, shared insights into the potential for expanding the funding round, given the continued interest from prominent private equity firms and global investors. Setiawan emphasized AwanTunai’s robust business model and its clear path towards profitability, noting the company’s EBITDA positive status and its anticipation of achieving positive profit after tax by the end of the fiscal year.

This round of funding not only underscores the growing investor confidence in AwanTunai but also highlights the significant potential for FinTech solutions to drive economic growth and digital transformation in Indonesia. As AwanTunai continues to expand its offerings and impact, the future looks promising for Indonesia’s SME sector, heralding a new era of digital finance in the region.