A twist in UangTeman’s tale: a white knight rises

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Fairy tales, movies, and books keep us steeped in the savior narrative. Some of last year’s box office juggernauts such as Spider-Man: No Way Home and Dune play to our never-ending fascination with a hero who swoops in to save the day. However, sometimes we forget to draw the line between fiction and reality.

In real life, things are more complicated: Even good intentions may have negative outcomes. The savior complex – or white knight syndrome – is defined as the need to “save” people by attempting to fix their problems. It’s an issue that negatively affects countless people. Those with a savior complex may experience frustration, loss of control, resentment, and a sense of failure, among other unpleasant emotions.

Usually, most of us don’t need a “savior” – we learn to deal with life’s problems by focusing on the actions in our control and accepting the ones we can’t control. However, occasionally, as in UangTeman’s case, there is a desperate need for a white knight. Today, we see how the Jakarta-based online lender could be saved from the brink of collapse.

Today we look at,

• How troubled UangTeman may have found a lifeline
• The birth of yet another unicorn in India
• Other newsy highlights such as eye-popping funding rounds and Twitter’s new SEA head

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More than a helping hand

Image credit: Timmy Loen

UangTeman is in dire need of capital. After having stopped disbursing loans – its sole business – since the early days of the pandemic, the company hasn’t paid employees’ salaries since the end of 2020, and may be criminally liable for nonpayment of employee income taxes and social security.

The embattled startup is not in good shape but behold, IN Financial Technologies Holdings, which has come to the rescue as a potential acquirer and white knight in UangTeman’s story.

• Signed, and sealed, but not yet delivered: While the two firms signed a term sheet on December 24, 2021, it is not a done deal yet. According to the timeline laid out in the letter, due diligence is slated to start this month, with the acquisition process set to be completed by April 1, 2022. As part of the acquisition process, UangTeman is seeking to extend its lending license from Otoritas Jasa Keuangan (OJK), Indonesia’s financial services authority.

• One promise too many: Given the online lender’s previously unfulfilled promises, former UangTeman employees remain skeptical about whether the deal will go through. “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.

• Boiling point: 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. One source said that, should the meeting fall through, some former staffers may consider holding a demonstration at the OJK offices.

Leading by example