How LinkAja got itself in the black

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There was a point in time when I was schooling that I had some trouble with money. Not that my parents didn’t provide for me (they would), but I didn’t want to ask for more allowance.

I decided to take up a part-time job but there were definitely months where money got a little tight at the end. It didn’t help that I wasn’t the most conscientious spender – I never splurged on big items but I didn’t track my daily expenses that well either.

As such, I was always happy when I got more shifts at my part-time gig or when I noticed that I had an unexpected surplus for a particular month.

Obviously, companies can’t be as poor at tracking funds as I was back then. But I do think they’d feel a similar happiness when they finally hit profitability after a long time of slugging it out. On that note, look no further than LinkAja.

Today we look at:

• LinkAja reaching positive EBITDA for three months straight
• GoTo Group securing US$150 million to boost its sustainability efforts
• Other newsy highlights such as TikTok Shop closing in Indonesia and Ula enacting layoffs.

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Men (and women) in black

Image credit: Timmy Loen

LinkAja has undergone several changes to its business model and eventually settled on a B2B2C strategy where it connects companies with dealers and resellers of mobile credits. It’s been working out for the Indonesian fintech firm so far – LinkAja recently achieved positive EBITDA for the first time.

Let’s take a look at what else is going on to help keep it in the black.

• Goodbye costs: After it adopted the B2B2C approach, the firm’s marketing expenses dropped 80% year to date. It also enacted some layoffs last year and discontinued almost all of its cashback offers.
• Big brother: LinkAja’s shareholders include state-owned enterprises (SOEs) Telkomsel and Pertamina. It’s taken advantage of its connection with both firms by providing services for SOE employees.
• Under the surface: While the firm is faring well, LinkAja is facing some legal troubles. Its subsidiary iGrow (now known as LinkAja Modalin) is involved in a lawsuit issued by 40 former lenders who want to claim losses due to missed returns.

Read more: LinkAja reaches profitability despite fall in users as new strategies take off

Green logo company gets greener

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