Payfazz is the first Indonesian startup to make it into Y Combinator

(L-R) Payfazz co-founders Ricky Winata, Hendra Kwik, and Jefriyanto. Photo credit: Payfazz.

Bill payments startup Payfazz is the first firm founded by Indonesians to make it into the Y Combinator accelerator.

It’s been amazing. It’s like an MBA for building startups.

Although each batch is fairly large with around 100 startups, getting accepted out of thousands of applicants holds prestige. The Silicon Valley startup program famously gave rise to companies like Airbnb, Dropbox, and Twitch.

(Disclosure: Tech in Asia is also a Y Combinator company. See our ethics page for details.)

Startups receive a US$120,000 investment from YC, but more importantly, become part of a global network of experienced entrepreneurs and YC alumni.

“It’s been amazing. It’s like an MBA for building startups,” Payfazz co-founder and CEO Hendra Kwik tells Tech in Asia in a Google Hangout.

He’s been in the US for two months now, with demo day looming in two weeks. He’s at a desk in a small dorm, a roommate milling around in the background.

Kwik represents his team alone – unusual for YC, which expects all co-founders to show up. His two co-founders Jefriyanto and Ricky Winata – they’ve know each other since elementary school – were denied visas. It’s not easy for Indonesians to enter the US. YC made an exception for Payfazz.

From bill payments to loans

The app lets people buy things like pre-paid phone credit and pay for electricity bills. It’s designed for the large percentage of Indonesians who don’t have a bank account and rely on cash. Users top up a mobile wallet through an agent, and then use the balance for easy online payments.

It’s not unique – bill payments and phone credit purchases are covered by established local players like Tokopedia, Bukalapak, and Go-Jek. And there are other standalone apps like Ayopop or Sepulsa working on solving this.

A Payfazz agent. Photo credit: Payfazz.

“The problem with Go-Jek or Tokopedia’s wallet is, they still have to be topped up via a bank account,” says Kwik.

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