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Rural banking start-up secures extra $8.5 million from East Ventures
Surabaya-based Komunal, which focuses on digitizing lenders outside of Jakarta, has secured a funding top-up from Indonesia’s East Ventures.
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The team behind rural banking start-up Komunal poses for a photo. (Courtesy of East Ventures/-)
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urabaya, East Java-based rural banking start-up Komunal has secured another US$8.5 million in a funding round led by one of Indonesia’s biggest venture capital firms, East Ventures.
“In 2023, we hope to reach a wider market, particularly rural bank [BPR] users and partners outside of Java and Bali,” Komunal CEO Hendry Lieviant explained as he announced the news in a press statement on Tuesday.
Komunal’s business revolves around providing platforms aimed at expediting BPRs’ digitalization.
It offers separate platforms for BPRs’ two core services: one for deposits from customers and one for loans, the latter with a focus on micro, small and medium enterprises (MSMEs).
The start-up claims to have channeled around $230 million though those platforms throughout 2022, translating to 350 percent year-on-year growth from the 2021 figure of just $50 million.
According to East Venture’s press statement, Komunal has recorded positive earnings before interest, taxes, depreciation and amortization (EBITDA) since October 2022, and its transaction volume is expected to exceed $500 million by 2023.
Read also: East Ventures disburses $211m of fund for startups throughout 2022
