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Indonesia’s Investree bags USD 23.5 million from MUIP and BRI Ventures

The P2P fintech platform currently operates in Indonesia, the Philippines, and Thailand.

Indonesian peer-to-peer fintech platform Investree has sealed the first tranche of its Series C funding round, notching USD 23.5 million. The investment was co-led by MUIP, the venture arm of Mitsubishi UFJ Financial Group, Inc. (MUFG), and BRI Ventures, the venture arm of the country’s biggest state-lender, Bank BRI.

The company will utilize these fresh funds to further develop its services, as well as ramp up the growth of Investree’s activities in the Philippines and Thailand as part of the company’s regional expansion strategy.

Last year, Investree expanded into the Philippines by establishing a partnership with Filinvest Development Corporation, one of the largest conglomerates in the country.

Investree is currently in the process of obtaining a license from the Philippines‘ Securities and Exchange Commission so they can operate at full capacity. Processing for the license will be completed in the second quarter of this year, said the company’s CEO, Adrian Gunadi.

Meanwhile, in Thailand, the firm is finalizing a strategic partnership with one of the largest payment platforms, 2C2P, to facilitate transactions through Investree.

Read this: VCs shouldn’t rush to sell in the secondary market now, says BRI Ventures’ Nicko Widjaja

Gunadi remains optimistic about business despite the COVID-19 pandemic, as the company has exceeded its disbursement target in the first quarter by 140%.

“There is an increasing demand for working capital for SMEs in the past month, and our strategy will remain focused on the key products that we have developed so far—short-term invoice financing that is less prone to volatility. We are also working with credit insurance to mitigate the risks of delayed payments,” Gunadi told KrASIA.

Other investors of Investree’s Series C round are Japan’s SBI Holdings and China’s 9F Group, both of which were part of the company’s Series B funding. Investree is currently in discussions with several more investors to raise the current round’s second tranche.

“Southeast Asia has significant potential in terms of SME lending, and we see that Investree already has a proven strategy and management expertise that really makes it the standout player in the fintech lending industry in Indonesia and wider Southeast Asia region as it grows overseas,” Nobutake Suzuki, president and CEO of MUIP said.

“We realize that the COVID-19 pandemic has generated financial uncertainty for SMEs inside and outside of Indonesia. Even then, we are highly confident that Investree will emerge in an even stronger position. Through this investment, we strongly believe that the collaboration between BRI Group and Investree that has been ongoing since 2018 can significantly contribute to economic growth in Indonesia,” Nicko Widjaja, CEO of BRI Ventures, added.

Additional reporting by Khamila Mulia.