Indonesia’s PrivyID gets Telkomsel backing in series A2 round

Telkomsel Mitra Inovasi (TMI), the investment arm of Indonesian wireless network provider Telkomsel, has invested an undisclosed amount in digital signature provider PrivyID in an extension of its series A round.

Photo credit: Telkomsel Mitra Inovasi

The investment was done through MDI Ventures, the corporate venture capital initiative of Telkom Indonesia, Telkomsel’s parent company, according to a statement.

PrivyID develops electronic identity verification technology for businesses in the telecom, multifinance, and retail industries. It’s an electronic signature that can be applied to a variety of digital documents, making them legally binding.

To provide its services, the company works with banks and other financial institutions to do background checks on applicants.

According to the statement, TMI’s investment in PrivyID is the first step in building an integrated platform that could accelerate financial inclusion in Indonesia. Focused on security, the service would identify users through a credit rating algorithm and combine it with digital signatures and verified identity cards to help financial institutions process users more quickly.

According to PrivyID CEO Marshall Pribadi, Telkom Group has played a key role in the company’s growth since the beginning of the startup’s development, as it has provided the startup with the knowledge and network needed to gain a foothold in the industry.

In 2017, PrivyID raised an undisclosed amount of investment in a pre-series A funding round led by MDI Ventures and Mandiri Capital, the corporate venture arm of Bank Mandiri.

It was also the first prize winner of Finspire, a startup business plan competition held by Mandiri Capital Indonesia in 2016.