State-backed e-wallet firm LinkAja has acquired peer-to-peer (P2P) lending start-up PT iGrow Resource Indonesia (iGrow) for an undisclosed amount as part of its efforts to tap into the small business financing market.
LinkAja president director Haryati Lawidjaja said on Thursday that the e-wallet’s network in tier two and three cities would open up iGrow’s market access to the regional small and medium enterprises (SME) segment.
Financial Services Authority (OJK) data showed that last year, only Rp 32.52 trillion (US$2.25 billion) or 15 percent of P2P loan disbursements went to borrowers outside of Java, signaling a wide untapped market on other Indonesian islands.
“The expansion of our business line to include financing shows our effort in providing financial access to middle- and low-income families, as well as SMEs,” Haryati sai...
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