Troubled UangTeman finds potential buyer, seeks OJK license extension

Indonesian online lender UangTeman has found a potential white knight, according to a letter of commitment from Digital Alpha Group – the embattled startup’s Singapore-based parent firm – that was shared with former employees. UangTeman is also seeking to extend its lending license from Otoritas Jasa Keuangan (OJK), Indonesia’s financial services authority.

The acquirer in question is IN Financial Technologies Holdings, a company registered in Singapore. It has a subsidiary called INFT, which bills itself as “Asia’s first community-driven digital business account.” INFT is also registered with the Singapore Fintech Association.

Tech in Asia has reached out to UangTeman CEO Aidil Zulkifli and INFT chief executive Eldwin Wong for comment. A spokesperson for FTI Consulting, UangTeman’s financial advisor, confirms that the letter is legitimate.

UangTeman founder and CEO Aidil Zulkifli / Photo credit: UangTeman

While a term sheet was signed on December 24, 2021, it is not yet a done deal. According to a timeline set out in the letter, due diligence is scheduled to start this month, with the acquisition process to be completed by April 1, 2022.

Once the deal is complete, UangTeman would implement a capital injection plan. In the letter, it commits to settle outstanding salaries, taxes, social security, and other employee rights once the funds have come in.

“This would be contingent on approval from OJK on the capital injection plan and the completion of the acquisition process by the investor,” says the FTI Consulting spokesperson in their statement.

However, former UangTeman employees tell Tech in Asia that they remain skeptical about whether the deal will go through, citing the online lender’s previous promises, which have not materialized.

“I don’t think it makes sense that due diligence is scheduled for three months. One month should be enough for a company whose main operation – [loan] disbursement – has stopped since April 2020,” said an ex-staffer in a WhatsApp group where the letter of commitment was shared. A screenshot of the group chat was provided to Tech in Asia.

UangTeman’s office in Pakuwon Tower, Jakarta, has been boarded up even though the company’s furniture remains inside. The sign forbids anyone from opening the seal and asks that inquiries be directed to building management.

Several UangTeman ex-employees have also signed a letter seeking an audience with Bambang Budiawan, OJK’s head of oversight for non-bank financial institutions, on Friday, January 14, 2022. One source says that should the meeting fall through, some former  staffers may consider holding a demonstration at the OJK offices.

Budiawan has not responded to Tech in Asia‘s requests for comment.

The letter comes on the heels of a Change.org petition posted by ex-employees, in which they ask UangTeman to pay for all its obligations. At time of publication, the petition has received over 400 signatures.