Homegrown point-of-sale (POS) system provider Moka has secured US$24 million in investments from foreign investors to finance its growing business activities in digital financial services.

Moka CEO and co-founder Haryanto Tanjo said in Jakarta on Wednesday that the new investment reflected growing trust from foreign and domestic investors in the company’s businesses.

Haryanto said the new investment would be used to accelerate product development, including digital payment integration. The company also planned to diversify beyond its POS system as it aimed to develop a new business division that was launched earlier this year called Moka Capital, he added.

The investment is the second of a series of funds received by Moka, which is engaged in digital payments and peer-to-peer lending in addition to providing the POS system. The new investment, dubbed Series B financing, is provided by new investors Sequoia Capital India and Softbank Ventures Korea, Singapore-based EDBI, EV Growth and existing investors.

Prior to investing in Moka, Softbank Ventures Korea had earlier invested in several homegrown startups such as online marketplace Tokopedia and healthcare platform Alodokter.

“With support from Sequoia India and other investors, we are committed to providing our clients with more services that will contribute to their growth,” Haryanto said during a press briefing.

In 2016, Moka received Series A financing worth $1.9 million from East Ventures, Convergence and Fenox.

Speaking about the expansion plan, Haryanto said that Moka had inked a deal with several digital payment providers, including Lippo Group’s Visionet Internasional (OVO) and Telkomsel’s T-Cash, to support the company’s own POS system. With the cooperation, OVO and T-Cash users can make cashless transactions at merchants using Moka’s POS system.

In addition, Moka also plans to provide credits to customers of its merchant members in cooperation with online payment and credit scoring platform Akulaku later this month.

Meanwhile, the company’s new division, Moka Capital, has offered corporate loans ranging from Rp 5 million ($337,549) to Rp 2 billion through peer-to-peer lending services that include KoinWorks, Taralite and Modalku. However, the loans can only be accessed by merchants that use the company’s POS system.

“We set the credit limit at up to Rp 2 billion to cater to the needs of large-scale enterprise clients,” the company’s vice president of branding and marketing, Bayu Ramadhan, said, adding that 50 merchants had applied for and disbursed loans in the past two months.

Moka, which was founded in 2014 by Haryanto and Grady Laksmono, offers a cloud-based POS system through mobile applications on iOS and Android-powered smart devices. At the storefront, the company provides POS software that allows merchants to take orders, issue invoices and accept payments using smart devices.

Merchants have to pay a monthly subscription of Rp 249,000 to be able to use the POS system.

Moka currently serves merchants comprising 12,000 small and medium enterprises (SMEs) in the food and beverage, retail, and service segments in 200 cities and regencies across the country, including the easternmost region of Papua. The food and beverage segment accounts for 60 percent of the company’s customer base.

“Approximately 2 million [of over 50 million] SMEs in Indonesia are capable of adopting the cloud-based POS system,” Bayu said.

Local food chain Eatlah, one of Moka’s merchants, has opened 12 branches, all of which are equipped with the cloud-based POS system.

“The simplicity of Moka’s POS system immediately appealed to the tech-savvy staff at Eatlah. We can easily monitor the progress of our branches through a single mobile application,” said Eatlah co-founder and chief of branding Michael Chrisyanto. (rfa)