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.
Start-up Pintek secures $21m debt facility from US investor
Pintek plans to use the facility to increase the accessibility and inclusivity of educational financing in Indonesia.
Change Size
F
intech lending platform for education Pintek announced on Monday that it had secured a US$21 million debt facility from Accial Capital, a United States-based impact-focused private debt investor.
The start-up plans to use the facility to increase the accessibility and inclusivity of educational financing in Indonesia.
“We are excited to partner with Pintek’s team, which has built the leading financing platform for the Indonesian education ecosystem. We are thrilled to support Indonesia’s education system through our partnership with Pintek,” Accial Capital chief investment officer Michael Shum said in a press statement on Monday.
He added that building a solid education system was a crucial and sound economic step for the development of a country.
Read also: Regulators, fintech companies work to balance innovation, regulation
Pintek provides loans to students and their families as well as to educational institutions and their suppliers, allowing borrowers to access all levels of education and vocational training. It also supports education institutions by supporting their investments in infrastructure and technological tools.
“Amid a challenging situation, education institutions need to implement technologies to support the adoption of distance learning for their students,” Pintek cofounder Ioann Fainsilber said in the statement. However, he added, the technological implementation across the education sector had been difficult due to the lack of financial resources.
Early findings of a joint study in December by Pintek and non-profit organizations Edufinance and RISE show that schools need more accessible funding as they are heavily relying on school operational assistance funds, which is disbursed in four stages. The study also reveals that parents' ability to pay tuition has decreased by 30 to 50 percent due to the pandemic.
The coronavirus outbreak has disrupted business activity, resulting in business closures and rising unemployment. At the same time, students are told to learn from home to avoid catching the virus, boosting the use of technology in the process.
Pintek cofounder and president director Tommy Yuwono said the company wanted to provide smart financing solutions for education institutions to maximize technology application in teaching and learning activity.
Read also: Poor internet connection, lack of devices hinder online learning: Ministry
“This is an opportunity for us to fully support the Education and Culture Ministry’s key program regarding the adoption of school digitalization as an effort to prepare human resources to face the Industry 4.0 era,” he said.
In December, Pintek announced it had received new funding in a round led by Amsterdam-based Finch Capital along with participation from existing investor Accion Venture Lab. The fintech’s last funding brought the total amount of equity raised by Pintek to $5 million.
Last year, it also launched a product called Pintek Instant, which allows borrowers access to loans of up to Rp 5 million ($339) with approval time of one hour and repayment in installments over a period of up to three months.
