KoinWorks announced that it has raised $12 million in a Series B funding round. The round was co-led by EV Growth and Quona Capital, with participation from existing investors. The funding will be used to expand the KoinWorks team and partnerships, as well as further develop the company's systems and technology.
Founded in 2016, KoinWorks is now Indonesia’s largest peer-to-peer (P2P) lending platform, registered and supervised by OJK. The company brings together borrowers and lenders via its platform, which provides access to financial services for small businesses (SMBs) that have historically been unbanked or underbanked by traditional financial institutions (FIs).
“When we started KoinWorks, we set out to democratize finance in Indonesia while fostering financial inclusion,” said KoinWorks Co-founder and Executive Chairman Willy Arifin in a press release. “In just a few short years, we’ve grown to have the largest retail investor base in Indonesia, with more than 300,000 users. The round was oversubscribed, which means that the money raised only represents the amount of liquidity that existing shareholders were willing to make available, and does not reflect the true appetite of investors in KoinWorks.”
Benedicto Haryono, KoinWorks’ CEO and other co-founder, added, "For the past three years, we have served the majority of Indonesia’s retailer market for the distribution of productive loans. Our rapid growth is supported by increasing public awareness of the importance of early investment.”
More than 60 percent of the investor-funders in the KoinWorks platform are millennials, with 70 percent revealing that KoinWorks is their first investment product.
“KoinWorks shares Quona’s mission of financial inclusion, and has had a dramatic impact on businesses in Indonesia as a result of their commitment to responsible lending,” said Ganesh Rengaswamy, co-founder and partner at Quona Capital. “Their role in enabling resources, catalyzing [SMB] growth, cannot be overstated. We are thrilled to support KoinWorks as they consolidate their market leadership.”
KoinWorks previously raised funds in a Series A funding round last year from investors Mandiri Capital Indonesia, Convergence Ventures, Gunung Sewu, Beeblebrox and Quona Capital.