KoinWorks’ P2P lending unit turns profitable as group revenue jumps 71%

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IN FOCUS

In today’s newsletter, we look at:

• Indonesia-based fintech firm KoinWorks’ revenue and loss fluctuations
• Why Tokopedia’s insurance partnership with Igloo makes sense
• Patrick Walujo, the CEO of GoTo Group who delivered the company’s first quarterly profit

Hi there,

The issue of high default rates in Indonesia’s online lending industry has been dominating headlines, with individuals who lend via these platforms suffering losses. This got me thinking: Why do many online lending startups opt for a peer-to-peer (P2P) model instead of using their own funds?

One reason, of course, is scalability. P2P lending allows platforms to expand their operations more easily without requiring large amounts of upfront capital.

KoinWorks, a local fintech firm, employs both approaches. The company generates revenue through fees charged to borrowers and lenders, as well as interest income earned from lending its own money, as my colleague Jofie points out in this week’s Big Story.

Between 2021 and 2022, KoinWorks recorded a 71% jump in revenue to reach US$15 million, while its total loans disbursed increased by 107% to US$568 million over the same period. Nathan Yoles, the firm’s chief marketing officer, attributed part of the increase in loan volume to expanding product offerings beyond P2P lending.

The company also disclosed that its P2P lending vertical and its KoinWorks Bank unit have become profitable, although the overall group has not yet reached profitability – a milestone it plans to achieve later this year.

Another Indonesian company looking to hit that same milestone is insurtech firm Igloo. As part of its growth strategy, Igloo is partnering with ecommerce giant Tokopedia to offer damage protection insurance. More in the Hot Take.

— Budi

THE BIG STORY

KoinWorks logs revenue surge, wider losses in 2022; targets profitability by 2024

Image credit: Timmy Loen

The Jakarta-based fintech firm says its P2P lending and KoinWorks Bank units hit profitability in January 2024 and full year 2023, respectively.

THE HOT TAKE

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