KoinWorks, the Indonesian peer-to-peer fintech lending platform for SMEs, on Monday announced that it raised USD 20 million in fresh debt and additional capital from various institutions. As for the equity capital, the company has completed the first close of a convertible note from several VC firms, including its existing investors Quona Capital, EV Growth, and Saison Capital. KoinWorks also secured new credit facilities, including from Netherlands-based Triodos Bank, to underwrite loans on its platform.
The additional funding is crucial for the business in the current environment, according to KoinWorks’ co-founder and CEO Benedicto Haryono. “This investment shows tremendous confidence in our abilities as best-in-class loan originators in the fintech space in Indonesia. We are very pleased to have new and internationally respected multiple institutions joining the existing investors behind us as we move forward,” he said in an official statement.
“KoinWorks will continue to run strongly”
COVID-19 has impacting fintech lenders in Indonesia, as many companies expect surging loan demand, and KoinWorks remains optimistic that it will continue to run strongly despite the crisis. In a recent interview with KrASIA, the firm’s CFO Mark Bruny said that the role of fintech lenders has become more vital for businesses, to meet the need for additional capital.
In order to maintain quality in its loan book during the pandemic, KoinWorks is actively applying more processes using digital data combined with traditional, proven banking techniques. “Koinworks protects its lenders through strict underwriting standards, a strong capital position, and ISO certified operations,” Bruny said.