Julo hits breakeven, logs $120m in annual recurring revenue

Kosuke Mori (left), senior managing executive officer and head of global business at Credit Saison, and Adrianus Hitijahubessy, CEO and co-founder of Julo / Photo credit: Julo

Julo, an Indonesia-based online lending platform, hit operating profit breakeven in December 2023. It also recorded a 73% increase in revenue for the 2023 financial year and an annual recurring revenue of over US$120 million, the company said in a statement.

In its statement, the company attributed the results to its “sustainable business model and operational efficiency.”

A Tech in Asia report in October 2023, citing an industry source, revealed that Julo had surpassed US$100 million in sales as it moved closer to profitability.

It’s unclear how the company’s operating profit stood for the full year. In 2022, however, Julo logged a net loss of 390 billion rupiah (around US$25 million) – up 488% year on year – according to Alternatives.pe, which tracks regulatory filings. This was mainly driven by growing bad debts and rising operating expenses.

Julo, which targets middle-income borrowers, said it has a cohort retention rate of over 70%, which “dramatically” lowers loan acquisition costs.

The company, which has over 2 million users as of October last year, told Tech in Asia that its active users avail of its services around 10 to 12 times per year. “This has been a key driver of our growth which will continue to deliver well past 2024,” Julo added.

The company disbursed over US$454 million in loans in 2023, a 50% increase compared to the previous year. Its total loan disbursements since its 2016 launch have crossed US$1 billion.

Besides cash loans, Julo also provides pay-later options, bills payment services, and student financing.

According to Tech in Asia data, the firm has raised US$95 million in total funding to date from investors like Credit Saison, Gobi Partners, East Ventures, and AC Ventures.

See also: Can Julo’s 2 million users help it succeed in Indonesia’s student financing industry?

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,596 rupiah.