Pintek, the Indonesian fintech focused on student loans, has bagged an undisclosed amount of funding from Accion Venture Lab, according to a statement. Prior to this, in November 2019, the company had received Pre-Series A funding in a round led by Global Founders Capital.
Pintek will use the fresh funds to expand its technology and platform to meet the needs of underserved students and schools during COVID-19. “We are determined to continue supporting the Indonesian government’s mission for education, throughout and beyond the challenges of the current pandemic,” said Pintek’s co-founder and director Ioann Fainsilber.
According to a survey conducted by the company, parents were concerned about their loss of income and transition to online learning. Most parents feared they wouldn’t be able to cover their children’s tuition fees, due to mass layoffs or salary cuts. They also voiced dissatisfaction over online learning programs, as schools had been closed to prevent infections among students.
Pintek underwrites student loans and splits payments into more frequent and smaller payments to make tuition fees more affordable. Most of the customers are first-time borrowers with no credit history. Right now, Pintek’s operation is reaching students in 26 of the nation’s 34 provinces.
The company said it has partnered with edtech platforms to provide schools with financing and access to remote learning programs, to help ease the transition to online learning. Pintek is also planning to launch a fundraising campaign to help teachers in Indonesia who are currently unemployed due to COVID-19.
“There is a clear need for educational financing in Indonesia, and Pintek’s unique model, strong leadership team, and promising growth potential make them the ideal partner to address that need,” said Vikas Raj, managing director of Accion Venture Lab.
Since 2018, Pintek has partnered with close to 100 education institutions and registered and supervised by Indonesia’s Financial Services Authority (OJK). The company aims to provide financial access to reduce the number of dropouts and improve educational facilities for a better quality of teaching and learning.