Indonesia’s KoinWorks bags $10m from UK-based Lendable

Indonesian peer-to-peer lender KoinWorks said it has secured US$10 million in additional funding from UK-based lending platform Lendable.

The investment follows the fintech startup’s US$20 million raise last month from existing investors Quona Capital, EV Growth, and Saison Capital, among others.

Photo credit: KoinWorks

Founded in 2015, Lendable provides commercial financing to companies across Africa and Asia, including small business lenders, consumer lenders, and asset finance firms. It has deployed over US$50 million to a number of fintech companies, with its investment into KoinWorks marking its first in Asia.

Mark Bruny, the chief financial officer of KoinWorks, said that Lendable’s investment proves there is still capital available for fintech lenders.

“As a company that focuses on productive sector funding, KoinWorks will aim this funding to strengthen digital small and medium-sized enterprises in Indonesia, […] particularly during this pandemic,” KoinWorks CEO and co-founder Benedicto Haryono said.

Through its platform, KoinWorks connects borrowers and lenders, providing SMEs with an alternative to traditional financial institutions. It claims to currently provide products such as business financing and invoice financing to over 400,000 businesses in Indonesia.

The startup recently took part in a fundraising initiative called Indonesia Pasti Bisa. The East Venture-backed program aims to support the mass production of 100,000 Covid-19 test kits and research related to the novel coronavirus. KoinWorks said it’s currently raising additional funds for personal protective equipment purposes under its KoinDonasi program.