Indonesian peer-to-peer (P2P) lending marketplace for underbanked communities Amartha has closed its Series A round.
The undisclosed round is reportedly seven-digits in US dollars and was led by Mandiri Capital Indonesia (MCI), the VC arm of Indonesia’s largest Bank.
Lynx Asia Partners and existing investors Beenext and Midplaza Holding also participated in the round.
According to the World Bank’s Global Findex database, 64% of adults in Indonesia do not have a bank account.
The Jakarta-based company aims to connect unbanked aspiring entrepreneurs to lenders wanting to make impactful investments.
Its technology makes use of machine learning to generate credit scores and measure borrowers rick profile.
Amartha CEO Andi Taufan Garuda Putra said: “With limited banking infrastructure and service coverage especially in rural areas, micro-entrepreneurs who work in informal economies struggle with the reality of accessing affordable working capital.
“Through Amartha, we have been able to create a new market that modernizes microlending and gives people at the bottom of the income pyramid better alternatives to fund their businesses.”
The company will use the capital to optimise its technology and product line as well as scale up its business to reach more micro-entrepreneurs across Indonesia’s remote geographies.
To date the company has facilitated more than $6m in loans to more than 30,000 women micro-entrepreneurs while claiming a seven-year long 0% default rate.
It aims to distribute $30m to 100,000 borrowers by the end of 2017.
MCI CEO Eddi Danusaputro said: “Amartha’s business model plays an important role in our economy as it addresses the challenge behind delivering financial services to the unbanked population.
“With over seven years of experience in microlending, strong field networks in rural areas, and a solid leadership team, Amartha’s compliments Bank Mandiri’s vision to drive financial inclusion across the nation.”
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