Indonesia’s largest P2P lending platform KoinWorks raises $12.2 million Series B funding round

KoinWorks, Indonesia’s largest peer-to-peer (P2P) lending platform, has raised $12.2 million (IDR 170 billion) Series B funding to expand the KoinWorks team and partnerships, and further develop systems and technology to provide financial inclusion throughout Indonesia with its popular one platform. The round was co-led by EV Growth and Quona Capital, with participation from existing investors. KoinWorks had previously raised a Series A in 2018 from investors Mandiri Capital Indonesia, Convergence Ventures, Gunung Sewu, Beeblebrox and Quona Capital.

Founded in 2016 by Benedicto Haryono and Willy Arifin, KoinWorks is an Indonesian Fintech Lending company that serves P2P Lending online investment with innovative machine learning, connecting investors with borrowers in a cutting-edge technology platform. Investors can invest from IDR 100,000 and the Borrower can apply for a loan with low interest. Used by more than 300,000 users, KoinWorks focuses on productive loans for business development through KoinBisnis and KoinPintar products.

KoinWorks brings together borrowers and lenders online through a single platform that provides access to financial services for SMEs who have historically been un- or underbanked by traditional financial institutions. Leveraging machine learning, KoinWorks enables borrowers to access low interest loans while funders receive better returns. Available products include business financing and invoice financing.

“When we started KoinWorks, we set out to democratize finance in Indonesia while fostering financial inclusion,” said KoinWorks’ co-founder and Executive Chairman Willy Arifin. “In just a few short years we’ve grown to have the largest retail investor base in Indonesia, with more than 300,000 users. The round was oversubscribed, which means that the money raised only represents the amount of liquidity that existing shareholders were willing to make available, and does not reflect the true appetite of investors in KoinWorks.”

KoinWorks’ co-founder and CEO Benedicto Haryono said, “For the past three years, we have served the majority of Indonesia’s retailer market for the distribution of productive loans. Our rapid growth is supported by increasing public awareness of the importance of early investment.”

Today more than 60 percent of investor-funders in KoinWorks’ platform are millennials, and 70 percent of investors say KoinWorks is their first investment product.

“The gap between access and convenience in providing investment products and loans makes KoinWorks a very unique fintech in Indonesia,” said Willson Cuaca, Partner at EV Growth, a joint venture growth fund between East Ventures, Sinar Mas Digital Ventures (SMDV) and YJ Capital Inc. “We’ve been impressed by the company’s rapid growth.”

“KoinWorks shares Quona’s mission of financial inclusion, and has had a dramatic impact on businesses in Indonesia as a result of their commitment to responsible lending,” said Ganesh Rengaswamy, co-founder and Partner at Quona Capital. “Their role in enabling resources catalyzing SME growth cannot be overstated. We are thrilled to support KoinWorks as they consolidate their market leadership.”