Tokopedia partners P2P lender Modalku to provide loans to merchants

Indonesian ecommerce giant Tokopedia is teaming up with P2P lender Modalku, the Indonesian counterpart of Singapore’s Funding Societies, to provide loan facilities to its merchants.

Dubbed Modal Toko, the feature lets Tokopedia merchants borrow up to US$21,500 (or 300 million rupiah) in financing.

Photo credit: Tech in Asia

“Tokopedia sees a strong need in our merchants for easier, instant, and flexible financing. Since we launched the feature in April 2019, tens of thousands of merchants have been able to access financing through Modal Toko,” said Samuel Sentana, Tokopedia’s assistant vice president of fintech.

Modal Toko’s loan approval process takes an average of one day. Once approved, the loan is disbursed directly into the merchant’s Tokopedia account, instantly available for cash withdrawal.

The company claims that merchants who have obtained loans through Modal Toko have seen revenues increase by 50% on average. The number of orders has also increased by an average of 2.5x.

Tokopedia previously provided similar services through Tokopedia Pinjaman Modal, which is the result of a partnership with a number of banks and online lenders, including Modalku.

Modalku is also a partner for Bukalapak – another Indonesian ecommerce unicorn – in a financing program for its affiliated offline merchants.