Jakarta, 17 September 2021 – KoinWorks, a Financial Super App platform that focuses on supporting financial inclusion, has received a further vote of confidence from Lendable Inc, a leading provider of debt to financial technology companies in emerging and frontier markets with a focus on increasing financial inclusion around the world.
Lendable’s facility has been increased to provide up to USD 30 million (IDR 435 billion) of capital to Indonesian SMEs through KoinWorks, a 300% increase from the original facility signed in May 2020.
Mark Bruny, Chief Financial Officer of KoinWorks, said that KoinWorks welcomed the increased trust given by Lendable to support the growth acceleration of digital SMEs in Indonesia.
“This is further evidence Indonesia’s SMEs, especially Indonesia’s digitally enabled SMEs, have shown strong resilience during the pandemic, and can even take advantage of the pandemic momentum to be able to grow even larger,” said Mark Bruny, CFA in a press release in Jakarta, Friday (17/9/2021).
Several KoinWorks’ Digital SME clients have succeeded in improving their business performance during the pandemic. This fact is supported by the Digital SME Confidence H1 2021 research report that was issued in mid-August. Based on 1,376 digital SMEs surveyed in 34 provinces in Indonesia, 48% of them showed their sales improved by 44% on average, compared to what was reported in 2020.
This improvement was driven by a digital transformation initiative where 20% of the businesses have shifted their sales method from conventional to digital and actively adding their digital sales channels.
The report also showed that the SMEs that use both conventional and digital channels dominate the market with a share of 48% compared to SMEs who only use one channel, either digital (40%) or conventional (12%) channels. This digital transformation initiative has succeeded in helping digital SMEs not only to survive but also to thrive during the pandemic. This transformation was also a major factor in the rise of the Digital SME Confidence Index to the level of 2.49 from the level of 2.37 at the end of last year and pushed us closer to the normal level of 3.00.
By the 2nd quarter of 2021, KoinWorks had provided funding of more than IDR 1 Trillion to 300,000 SMEs in Indonesia, an increase of three times compared to 2020. It signifies a remarkable development as many SMEs are shifting and pivoting to a digital world.
Lendable’s Chief Investment Officer, Hani Ibrahim, said that the challenge of accelerating lending growth to the SME segment in Indonesia is increasingly dynamic, especially due to the pandemic. The key to the strategy is to support businesses that are resilient and provide essential goods and services.
“KoinWorks share the same vision and mission as Lendable, to help people realize and maximize their full potential by providing accessible and affordable financial solutions. We very much believe that KoinWorks can be instrumental in growing the SME segment in Indonesia, especially through the use of digital channels as we technology as a strong enabler of financial inclusion“ said Hani Ibrahim.
To date, Lendable has supported around 1.5 million consumers or MSMEs globally through its fintech partners by providing debt capital. Through KoinWorks, a pioneer of fintech peer-to-peer lending in Asia, Lendable is expanding its partnership to support the growth of digital SMEs in Indonesia.
KoinWorks continues to develop financial technology services, along with digital adaptation strategies for the SME segment to increase their income by providing new product services that have various features that will help them in operating their business.
