Funding Societies, Carro announce investment into Indonesia’s Bank Index

Singapore-based fintech firm Funding Societies and used-car platform Carro have announced their investment in Indonesia’s Bank Index. The value of the deal is undisclosed.

Tech in Asia first reported on the matter in February.

(From left) Carro Indonesia CEO Jeremy Ong, Bank Index’s president commissioner Joko Setiawan, and Funding Societies co-founder Reynold Wijaya / Photo credit: Funding Societies

Founded in 1992, Bank Index is a local bank that focuses on the SME segment and consumer banking. It currently has 52 offices across Greater Jakarta, Java, Sumatra, Bali, and Batam.

In a statement, Funding Societies – known as Modalku in Indonesia – said that the investment will support the company’s business strategy into neobanking.

“Since 2015, we have been partnering with banks across the region, and our partnership with Bank Index will take fintech-bank collaboration to the next level,” said Funding Societies group CEO Kelvin Teo.

The news comes several months after the fintech firm announced a US$144 million series C round led by SoftBank Vision Fund 2. Funding Societies co-founder Reynold Wijaya said that it plans to use part of the money for its neobank ambitions.

Since its establishment, Funding Societies has disbursed more than 5 million SMEs loans worth US$2.2 billion in total.

See also: As digibanks rise, will Indonesia’s online lenders become obsolete?

On the other hand, Carro is an auto marketplace that was founded in 2015. The firm has raised more than US$500 million in funding from prominent investors such as SoftBank Vision Fund and Permodalan Nasional Berhad.

“Bank Index’s plan for a fintech industry aligns with our vision of building capabilities and infrastructure to serve customers, whether it’s buying, selling, SME financing, insurance, and more. As such, co-investment was the natural choice,” said Carro Indonesia CEO Jeremy Ong.