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.
LinkAja acquires P2P lender iGrow, taps into SME financing
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.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
People crowd the payment counters of LinkAja during an event at Bung Karno Stadium in Jakarta on June 30, 2019, to launch the digital payment platform. (kontan.co.id/Carolus Agus Waluyo)
S
tate-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 said in a press statement.
LinkAja’s statement did not disclose the acquisition value but hinted that it was covered by the $100 million raised through its series B funding, which includes an undisclosed amount from ride-hailing company Gojek.
Read also: E-wallet LinkAja receives Gojek investment
Indonesia’s economy relies heavily on small businesses, which account for more than 60 percent of gross domestic product (GDP) and employs 90 percent of the labor force.
