Singaporean mortgage-brokering startup banks $700k as it expands in Indonesia

Mortgage-brokering platform Mortgage Master said it has raised S$928,000 (US$700,000) in a pre-series A round of funding led by private angel investor Woon Young Jeong.

Existing backers including former Westpac International president and S Cube Capital founder Bala Swaminathan and Tembusu Partners’ Andy Lim also joined in on the round, according to a statement.

Mortgage Master co-founder and CEO David Baey / Photo credit: Mortgage Master

Founded in 2018, Mortgage Master aims to be a one-stop platform that helps homeowners find mortgage rates that meet their budget and their needs. Since its establishment, the startup claims it has helped transact over US$600 million in home loans and has provided advice for a little over US$3 million worth in mortgages.

The company said it will use the new funds to bankroll its overseas expansion efforts, building on a strong consumer momentum. Mortgage Master says that over the last 12 months, it has tripled its customer base in Singapore, collectively reducing its clients’ monthly home loan repayments by over US$75 million.

The startup also said it plans to strengthen its customer acquisition by educating potential users, forging strategic partnerships, and entering new markets. Specific markets of focus are those in Indonesia, according to the statement.

Data from Numbeo shows that the archipelago currently has the highest loan interest rates in the region. This has raised concerns over home affordability, with home ownership rates in Jakarta hovering at less than 50%, Mortgage Master said, citing a study from ResearchGate.

The company said it has already established an Indonesian office and inked partnerships with five major banks. It has also opened a platform in the country, Mortgage Master Indonesia, and seeks to explore more local partnerships.

Prior to its pre-series A round, Mortgage Master raised almost US$400,000 in its oversubscribed seed funding round in 2020 to build deep-tech capabilities and scale its platform. The round was led by S Cube Capital’s Swaminathan and Tembusu Partners’ Lim.