East Ventures bets again on Indonesia’s Komunal, leads $2.1m round

Indonesia-based Komunal has raised US$2.1 million in a series A round led by East Ventures and participated in by Skystar Capital. Both investors had backed the fintech startup in its seed funding round.

Komunal co-founders (from left) Rico Tedyono, Hendry Lieviant, and Kendrick Winoto / Photo credit: Komunal

Komunal will use the funds to enhance DepositoBPR, which enables its customers to access the highest possible government guaranteed deposit rates from rural banks in any region without having to make a physical visit.

Indonesia has 1,500 BPRs (Bank Perkreditan Rakyat) or rural banks, which are allowed to provide loans in their respective provinces. They can also source deposits nationwide, which are guaranteed by the government at ceiling rates that are 2.5% higher than those of commercial banks.

Komunal is looking launch Indonesia’s first e-bilyet (or electronic bank certificates) for BPR deposits by the end of 2021.

According to Komunal co-founder Kendrick Winoto, most BPR deposits currently use bank slips that need to be physically delivered to depositors – from Bali to Jakarta and vice versa, for instance – when funds are withdrawn.

“The e-bilyet, which is created digitally, will effectively eliminate this friction and help our vision to make the product accessible nationwide,” Winoto added.

Komunal has been working with 60 BPRs across Java and Bali so far, and it plans to double its BPR market share soon.

The startup has also disbursed US$50 million of loans to hundreds of small and medium-sized enterprises (SMEs) in Indonesia, more than 2x the amount compared to the same period last year. Komunal is targeting US$150 million of SME loans by next year.

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“Komunal introduced the new concept of neo rural bank to upgrade and equip smaller banks with advanced capabilities. We hope this approach will accelerate financial inclusion massively and deeper to every Indonesia region,” said Willson Cuaca, co-founder and managing partner of East Ventures.