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Fintech firm Amartha bags $7.5 million from Norwegian fund
Indonesian peer-to-peer lender Amartha has received funding to support small businesses owned by women living in rural areas, especially those with a positive environmental impact.
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Norwegian Ambassador to Indonesia Vegard Kaale (left) and Amartha founder and CEO Andi Taufan Garuda Putra pose for a photo at the Norwegian Embassy in Jakarta on Friday, the day Norwegian wealth fund Norfund agreed to invest US$7.5 million in Amartha. (Courtesy of Amartha/-)
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inancial technology (fintech) company Amartha has signed a deal for investment worth US$7.5 million from Norwegian state-owned investment fund Norfund, in a collaborative effort to help women in rural areas establish and run their own small businesses.
Amartha, a peer-to-peer (P2P) lender, will disburse the funds to small and medium enterprises (SMEs) owned by women, especially businesses with a positive environmental impact, such as plastic upcycling.
"We are thankful and proud to be the first fintech company in Southeast Asia to receive funds from Norfund," Amartha founder and CEO Andi Taufan Garuda Putra said in a statement on Friday.
Established in 2010, Amartha has disbursed more than Rp 3.7 trillion (US$259.24 million) in loans to around 670,000 women to date.
Last year, the company launched Plastic Waste Womenpreneur (PWW), a program to fund women-led plastic waste management businesses in villages.
Local waste collection in Indonesia is dominated by the informal sector, with scavengers collecting 354,900 tons of plastic waste per year, while waste banks and government-owned facilities collect just 69,900 tons per year. However, companies are stepping in to formalize the activities.
Read also: Informal waste collectors key to new recycling era
Norfund investment director and Asia regional office head Fay Chetnakarnkul said investment in Amartha would allow the company to strengthen Amartha's capability to serve the unbankable segment.
"Despite Indonesia's vast economic growth, financial inclusion is still a big issue in the underprivileged community," said Norwegian Ambassador to Indonesia Vegard Kaale.
Owned by the Norwegian Ministry of Foreign Affairs, Norfund is a private equity firm that focuses on agribusiness, clean energy and financial services in developing countries.
