TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Mandiri Capital inject funds into fintech startup
Change Size
Visitors at the Local Startup Fest 2017 at The Space Senayan City, South Jakarta, on Sunday. The event aimed to connect young businesses to the general public. (JP/Masajeng Rahmiasri)
P
T Mandiri Capital Indonesia (MCI), a subsidiary of state-owned lender Bank Mandiri, and its partners Lynx Asia Partners, Beenext and Midplaza Holding will invest up to US$5 million in financial technology (fintech) lending startup Amartha.
MCI’s president director Eddi Danusaputro said in Jakarta on Tuesday that the company led the funding for business development of Amartha, which provides loans to unbanked people in rural areas under a peer-to-peer lending method.
“We see a mutual synergy between Mandiri and Amartha to increase financial inclusion in this country,” he said during a press conference which was held in Santa Market, Jakarta.
(Read also:Do fintech companies threaten multi-finance firms?)
The amount of the money to be invested in Amartha would range between $2 million and $5 million, Wddi added.
Amartha founder and CEO Andi Taufan Garuda Putra said the company would use the fund to expand to its loans to rural areas this year.
“We will increase the number of agents in most parts of Java and upgrade our applications to make it easier and practical for the investors in monitoring their investment,” he said, adding that the company provides loans of between to Rp 2 million ($149) to Rp 10 million to its rural clients.
Amartha, which began its operation last year, has registered 28,000 borrowers, who mostly comprise of owners of micro companies in West Java and Banten. The company so far has provided loans worth Rp 68 billion through 150 field agents.
The number of the borrowers on Java Island is expected to increase to 100,000 borrowers this year. (ecn/bbn)
