Investree acquires stake in Indonesian digibank

Investree Group, the holding firm for fintech lender Investree, has acquired an 18.4% minority stake in Amar Bank, an Indonesian commercial and digital bank backed by Singapore-headquartered conglomerate Tolaram.

Photo credit: Investree

The fintech firm intends to use the acquisition to expand its financing products and offer broader digital business solutions to MSMEs across Indonesia.

Adrian Gunadi, director of Investree Group, said the initiative aims to create collaborations between fintech firms and banks as well as to expand the company’s reach to potential borrowers in cities that are part of Amar Bank’s network.

The bank currently offers a digital lending product called Tunaiku and a mobile-only banking platform called Senyumku.

There are about 92 million unbanked and 47 million underbanked adults in Indonesia, with the underbanked and rapidly growing MSME segment expected to soon contribute around 60% of the country’s gross domestic product.

Founded in 2015, Investree operates a lending marketplace for SMEs for both conventional and Shariah-compliant businesses.

Last year, Philippine banking-as-a-service platform Netbank partnered with Investree to launch a credit services product for SMEs in the country. This was part of the latter’s push to partner with regional digital banks to channel funds into such enterprises.

Other lending players in the Indonesian market have also been buying stakes in local banks. Funding Societies and Carro recently announced its investment into Bank Index, while FinAccel acquired a majority stake in publicly listed Bank Bisnis Internasional last month.

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