Indonesian fintech AwanTunai on Monday announced that it has raised USD 20 million in a debt facility from Accial Capital. The company will use the funds to finance loans to suppliers and micro-merchants, according to a statement.
The startup plans to grow AwanTempo, its inventory purchase financing program that allows merchants to improve its cash flow management. It says that for Indonesia’s 60 million micro-merchants, the lack of transaction records remains the main obstacle for getting credits from banks or other financial institutions.
Founded in 2017 by Dino Setiawan, Windy Natriavi, and Rama Notowidigdo, AwanTunai aims to digitize the country’s offline, fast-moving consumer goods (FMCG) and food supply chain by providing micro-merchants access to financing services. The company helps its users with inventory ordering, digital payments, and low-cost inventory purchase financing.
AwanTunai says it is able to originate low-interest financing to the underserved and unbanked merchants by leveraging merchant transaction data recorded on its app.
“Our vision is affordable financing for the millions of underserved micro businesses that employ 90% of Indonesia’s workforce,” said CEO Dino Setiawan. “We collaborate with banks and funds that understand our transaction data-based risk management. Low-cost institutional capital accessing Indonesia’s vast unbanked and underbanked market is the way to achieve impact at scale.”
Back in 2018, the company raised USD 4.3 million in Series A round led by Insignia Venture Partners and AMTD Group.