Indonesia’s KoinWorks raises $20m in equity, debt funding

Indonesia-based fintech startup KoinWorks said it has raised US$20 million in new equity and debt capital.

Photo credit: KoinWorks

On the equity side, KoinWorks said it hit the first close of its convertible note, which received backing from existing investors Quona Capital, EV Growth, and Saison Capital, among others.

It also secured new credit facilities to underwrite loans via its lending platform. One of the new facilities was provided by Triodos Bank, a global financial institution based in the Netherlands.

“As an institution with the protection of our lenders’ capital at our core, being well capitalized is always a top priority,” said KoinWorks co-founder and executive chairman Willy Arifin. The exec added that the company continues to work with financial institutions and retail lenders to support digital small- and medium-sized enterprises during the Covid-19 pandemic.

The company said that to maintain quality in its loan book amid the outbreak, it has been actively applying more processes that combine digital data with traditional banking techniques.

KoinWorks is also part of East Venture-led initiative Indonesia Pasti Bisa, a fundraising activity that aims to support the production of 100,000 Covid-19 test kits and genetic research for a potential vaccine.

Founded in 2016, the company connects SMEs to investors through its peer-to-peer lending platform.

In September 2019, KoinWorks co-founder and CEO Benedicto Haryono told Tech in Asia that the company was close to profitability, hitting about US$14 million in disbursements per month at that time.

Earlier that year, the startup bagged US$12 million in a series B round led by Quona Capital and EV Growth. It was followed up by Japan’s Credit Saison in November 2019, pouring in US$1.4 million as part of the same round.