Grab leads series B round of up to $100m in Indonesian fintech LinkAja

Indonesia’s fintech app LinkAja announced that it has raised up to US$100 million in a series B round led by Southeast Asian super app Grab.

Telkomsel, BRI Ventura, and Mandiri Capital Indonesia also participated in the round.

Photo credit: Telkomsel

Commencing its commercial operations in June last year, LinkAja provides e-payment services to the middle-class segment and to micro, small, and medium enterprises (MSMEs) in Indonesia.

It currently has more than 58 million registered users, with over 80% of them coming from Indonesia’s Tier 2 and Tier 3 cities, according to a statement.

Amid Covid-19, the company claims it saw a 3x growth in both its gross transaction value and transaction numbers in Q3 2020 compared with the same period last year.

Along with the investment, the tie-up between Linkaja and Grab could mean synergy in terms of ecosystem access and technology: As LinkAja is founded by Indonesian state-owned enterprises, Grab could have access to the country’s train and highway toll payments, utility bills, and social welfare distribution, among others, while LinkAja will benefit from Grab’s reach and technological expertise.

“Cash is still king in Indonesia, and there are millions of Indonesians who remain invisible to traditional banking systems,” said Neneng Goenadi, managing director of Grab Indonesia. “The strategic collaboration between LinkAja and our ecosystem, which includes partners like OVO and Tokopedia, will allow us to bring cashless services to all Indonesians in a way that is trusted, convenient, and accessible.”

Additionally, Grab also launched its Tech Center in Indonesia, which will serve as its regional innovation hub to build technology solutions for MSMEs in Southeast Asia.

The center will focus on researching, designing, and testing tools and technology for the Indonesian MSME market first, which will then be exported to other emerging markets in Southeast Asia. It will also invest into local tech talent development.