Dana turns unicorn as Indonesia’s fintech fever spreads

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We’ve said it before and we’ll say it again: Indonesia’s fintech sector is on fire. The opportunity to back firms that cater to the financial needs of the tech-savvy nation’s large unbanked and underbanked population is simply too big for investors to ignore.

From super apps and ecommerce platforms to VCs and fintech firms themselves, the sheer number of investors that have thrown their hats into the ring is mind-boggling. You can find a comprehensive list and analysis of the firms bankrolling Indonesia’s digital banks in this visual story.

Another reason why investors are gamely loosening their purse strings is because fintech firms are likely to be the backbone of Indonesia’s burgeoning digital economy. It is expected to double to US$146 billion in 2025, thanks to the increased usage of digital apps – a habit spurred on by the Covid-19 pandemic.

It is a testament to the strength of the fintech space in Southeast Asia’s largest economy that half of the unicorns based out of the archipelago come from this sector. Last week, e-wallet Dana joined fintech peers Xendit, Kredivo, Ajaib, Akulaku, and Ovo in Indonesia’s unicorn club. Today’s featured piece highlights the latest funding round that took Dana over the line.

Today we look at:

• Indonesia’s Dana entry into the unicorn club
• Job cuts at ecommerce giant Shopee
• Other newsy highlights such as Terraform co-founder denies being on the run and Ant’s potential second chance at an IPO

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Fertile fintech grounds

Image credit: Timmy Loen

With a population of 274 million people, Indonesia is fertile ground for tech startups looking to plug gaps in the conventional banking system. But since competition in this market will likely intensify in this market, firms could do with some external aid to stay ahead.

Dana has that covered after bagging new funds from Sinar Mas Group, a conglomerate run by one of Indonesia’s richest families, and Lazada, the face of Chinese titan Alibaba’s ecommerce push in Southeast Asia.

• Done in emphatic fashion: Founded in 2017, Dana’s latest fundraise puts its post-money valuation at over US$1.2 billion – well over the billion-dollar mark needed to guarantee unicorn status.
• Staying level-headed: CEO Vince Iswara doesn’t appear overly keen to mark the occasion, having previously declined to comment on Dana’s unicorn status. Instead, he said the firm’s focus going forward is to expand its financial services to pursue its next phase of growth. Dana has 120 million users and processes 10 million transactions per day.
• Major stakeholders: Sinar Mas, which invested US$250 million in Dana, now owns 22.11% of the firm. Meanwhile, Lazada now has a 33.18% stake in Dana after spending US$304.5 million for 4.8 million shares that previously belonged to existing investor Emtek Group.

Read more: Indonesia’s Dana joins unicorn club

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