UangTeman on the brink of collapse, pins hope on white knight

UangTeman is a startup that alternates between positive and negative headlines. It has gotten attention not only for amassing total funding worth over US$20 million from investors like Alpha JWC Ventures and Draper Associates, but also for facing a US$1 million lawsuit (that has since been withdrawn) and internal issues.

But it turns out that these are the least of the Jakarta-based online lender’s troubles. Based on conversations with ex-staff, UangTeman appears to be at the brink of collapse: It hasn’t paid employee salaries since the end of 2020, and it may be criminally liable for nonpayment of income taxes and social security. What’s more is that it no longer disburses loans – its sole business.

UangTeman founder and CEO Aidil Zulkifli / Photo credit: UangTeman

UangTeman founder and CEO Aidil Zulkifli claims that the startup is currently the target of acquisition by three potential white knights. Should the acquisition go through, it would at least solve the company’s financial woes and possibly secure its future.

But sources are skeptical, citing UangTeman’s fundamentals and Zulkifli’s reputation among employees.

“We’ve struggled ever since the pandemic,” says a former senior executive. “[Zulkifli] has said multiple times over several months that we were close to a new funding round or an acquisition, but even until this day, there has been no resolution whatsoever.”

A source close to the company tells Tech in Asia that negotiations are ongoing but did not provide further details.

Tip of the iceberg

UangTeman is no stranger to tough times. As Tech in Asia previously reported, the fintech firm faced internal issues in 2018 that threatened to derail its momentum.

That year, the company saw a sudden, sharp decrease in disbursements – just months after reaching a record high – and the closure of multiple branch offices. But the more fundamental problem turned out to be internal.

Eighty-three employees – including the deputy CEO, chief technology officer, and several other senior executives – left UangTeman that year. In their exit interviews, employees explicitly stated that company culture was an issue, with many urging Zulkifli to improve his management style.

But a year later, the company appeared to have righted the ship as it clinched an elusive lending license from OJK, Indonesia’s financial services authority.

UangTeman also brought in Draper Investments, which led the first part of a US$10 million series B round. The startup announced the Silicon Valley VC firm’s investment in February 2020.

The company also welcomed a new, high-profile deputy CEO: Masa Paskalis Lingga. He joined Uang Teman after senior operations roles at Bank Muamalat, Sumitomo Mitsui Banking Corporation, and Taiwan’s CTBC Bank, among others.

Messy fundamentals?

Beggars can’t be choosers?