Fintech lending platform Investree announced today that it has received a commitment of US$15 million from US-based Accial Capital to provide loans to small and medium enterprises (SMEs) in Indonesia.
Accial is an impact-focused, tech-enabled investor in small business loan portfolios in emerging markets.
The two firms have been working closely with each other since 2017 and have been funding a sub-segment of Investree’s SME loan portfolio.
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The new credit facility will provide financing to more Indonesian SMEs through Investree’s diversified loan portfolio, including invoice financing, buyer financing, working capital term loan, and online seller financing.
Michael Shum, Chief Investment Officer of Accial, said: “Investree was our first investment in Indonesia back in 2017 and we have been impressed by the progress they have made since then. The new facility will continue to support Investree as they close the credit gap for SMEs in Indonesia.”
Adrian Gunadi, Co-founder and CEO of Investree, said: “Due to the pandemic, it is a challenging period for everyone, even for global and Indonesian financial institutions. Accial Capital’s determination to provide this abundant support for SMEs in Indonesia through Investree can be considered as a vote of confidence of our prospects as a fintech lending company from international financial institutions.”
Indonesian SMEs, which account for 58 per cent of the GDP and employing 97 per cent of the workforce, play a vital role in driving the economy. Yet, many SMEs continue to experience a shortage of financing.
The latest International Finance Corporation (IFC) indicators showed 53 per cent of SMEs remain underserved in the market.
Established in 2015, Investree offers conventional and sharia loan products to support the growth of Indonesia’s SMEs. It has since expanded into Thailand and the Philippines.
The fintech startup claims that as of September, it has transacted IDR 7 trillion (US$493,000) in loans to over 1,400 borrowers on its platform.
In December last year, Investree acquired a stake in Mbiz, a B2B procurement startup, for an undisclosed sum.
Image Credit: Investree
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