UangTeman has lost its online lending license, according to an announcement from Otoritas Jasa Keuangan (OJK), Indonesia’s financial services authority.
The news comes amid the fintech startup’s struggle to find a white knight who can save it from collapse.
Tech in Asia has reached out to FTI Consulting, which is handling UangTeman’s bankruptcy proceedings, for comment.
As we previously reported, UangTeman had stopped paying salaries and even disbursing loans – its sole business – from the end of 2020, as it dealt with the fallout of the Covid-19 pandemic. The second tranche of its US$10 million series B round, which was announced earlier that year, had also fallen through.
Since then, former and current employees have demanded the settlement of their outstanding salaries. The embattled company may also be criminally liable for the nonpayment of its employees’ income taxes and social security contributions.
A group of 11 individual investors who collectively put in over US$600,000 in the company have also joined the chorus. So far, they have been unable to reclaim their investments’ principal.
Earlier this year, UangTeman said it had found a potential buyer: a Singapore-registered company called IN Financial Technologies Holdings. At the time, UangTeman was looking to complete the acquisition process by April 1, 2022. However, it is currently unclear whether there have been any new developments.
The loss of the lending license may also put into question UangTeman’s attractiveness to potential acquirers. Applying for a fintech license in Indonesia – whether for lending or payments – entails a lengthy process. In the past, companies such as Gojek have resorted to acquiring smaller companies that already hold the license.
This story is developing. Please check back for updates.
Editing by Eileen C. Ang
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