Indonesia’s KinerjaPay gets US$200 million investment deal from local conglomerate

The investment will be used to accelerate the company’s P2P lending operations.

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Indonesia’s KinerjaPay gets US$200 million investment deal from local conglomerate

Indonesian mobile payments app KinerjaPay raised US$200 million investment from Wahana Group, a Surabaya-based conglomerate. The investment consists of a subscription of $100 million worth of shares in KinerjaPay’s Series F round and an additional $100 million in shares of the company’s Series G Convertible Preferred Stock. The company is listed on the US OTC market under the ticker KPAY.

Its overall share price hasn’t been performing well and financial markets news aggregator Seeking Alpha calls the company “tiny” at a market cap of US$ 6.6. million. The announcement did result in a 50% uptick for KinerjaPay.

KinerjaPay will utilise the funding to accelerate the company’s P2P lending operations, potential acquisitions, and investments as part of its expansion plan in 2019.

“This investment commitment, which is expected to close within the next ten days, will transform the company into a significant market presence in our e-commerce and peer-to-peer lending operations, principally in Indonesia,” said chairman and CEO Edwin Witarsa Ng in an official statement.

KinerjaPay is a digital company running a web portal and mobile app that provides a payment solution for its marketplace platform. Through its omnichannel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, health insurance, and direct transfer.

In September last year, KinerjaPay Corp announced the establishment of Kinerja Simpan Pinjam to manage a P2P lending platform named KFund that focuses on micro-lending activities. The platform also has KPop Store, a concept outlet shop that’s intended to increase the user experience of KinerjaPay. The idea is for users to apply for small loans on KFund, which they can use as initial capital to open a mini KPop Store.

The concept of online-to-offline integrated solutions, where aspiring entrepreneurs can apply for funds, open a shop, and start selling physical and digital goods in their communities is highly popular in Indonesia, but a clear winner in this category has yet to emerge. Variations of this concept are being developed by Kudo, which was acquired by Grab; Kioson, which went public in 2017, and Warung Pintar, a fairly new startup.

Editor: Nadine Freischlad