Photo credit: Amartha
Amartha, an Indonesian peer-to-peer lending platform, has bagged US$17.5 million in fresh funding from global nonprofit Accion. This appears to be the company’s first equity round since a US$28 million investment co-led by MDI Ventures in 2021.
Accion made the investment through its US$152.5-million Accion Digital Transformation Fund, which aims to support banks and other financial institutions focused on serving MSMEs in South and Southeast Asia, Latin America, and Africa. The investment would help Amartha increase product offerings for MSMEs in Indonesia, as well as reach more customers, the nonprofit said.
This fundraise comes as Amartha considers a Southeast Asian expansion. Like Indonesia, other parts of the region have challenges for its microentrepreneurs, such as limited credit access and low levels of financial digital literacy.
Currently, the Indonesian lending firm offers loans to unbanked Indonesians – mostly women – who are outside the Java Island by connecting them with investors who can shell out the requested loans.
According to its latest statement, Amrartha says it has distributed over US$1.6 billion worth of working capital loans to over 2.5 million businesses, most of which are women-led. In 2023, Amartha raised US$100 million from US-based debt provider Community Investment Management, with aims to disburse the amount as working capital loans for MSMEs.
See also: Abrupt removal of loan insurance on Amartha frustrates lenders
Editing by Putra Muskita and Dhania Putri Sarahtika
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