Ex-Spenmo CPO denies firm’s embezzlement rumors

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Singapore-based fintech firm Spenmo is currently being hit by rumors of alleged fund embezzlement in Indonesia.

Spenmo Indonesia is suspected of embezzling S$1.2 million (about US$895,000) intended for the acquisition of two financial service providers, namely multifinance company Beta Inti and remittance firm Aryadana.

A source familiar with the acquisition process told Tech in Asia Indonesia that the rumor is untrue. The individual, who preferred to remain anonymous, mentioned that the acquisition process has been completed in compliance with Indonesian regulations.

Former Spenmo chief product officer Andika Prasetya also denied the embezzlement allegations.

“No money was embezzled. The plans for the acquisition and wiring process were transparent to all parties. There is also no evidence of embezzlement taking place,” Prasetya told Tech in Asia Indonesia.

He explained that the acquisition process had been ongoing since mid-2021.

“By the end of 2022, all documents had been signed by the CEO, and an interview with the Financial Services Authority was also completed in late 2022,” he added.

Andika resigned from Spenmo in February 2023, a few months after the company announced that it had completed the acquisition process for the two financial service providers.

A representative from Spenmo Singapore also told Tech in Asia Indonesia that the embezzlement rumor is not connected to user funds and that the company continues to operate normally. The representative declined to comment further on the issue.

“We are aware of the recent rumors circulating, but our main priority now is to maintain the integrity and trust of our customers, partners, and investors,” the representative explained in a written statement to Tech in Asia Indonesia.

“Therefore, we are committed to upholding our ethical standards by adhering to corporate governance guidelines and existing regulations. Our customer funds are separated and held by third parties, all of whom are licensed by the relevant regulators in the markets where we operate.”

Tech in Asia Indonesia has reached out to several Spenmo investors for official comments.

Spenmo was founded in Singapore in 2020 and has since expanded to Indonesia and the Philippines. The Y Combinator graduate last raised US$85 million in a series B funding round in January 2022, bringing its total funds raised to US$121.4 million.