Modalku Group secures USD 40 million series C funding commitment
JAKARTA - Modalku Group has earned a Series C funding commitment of USD 40 million (or around Rp 625 billion) from previous investors who have joined as well as new investors whose names cannot be announced for now. The funds will be used to realize Modalku's vision of increasing financial inclusion in Southeast Asia and creating a positive impact on the economy in Indonesia, specifically by reaching more MSMEs.
Modalku's Co-Founder & CEO, Reynold Wijaya, said, "In the midst of this global pandemic, we are very grateful to be trusted by investors to develop the company. Previously, we were also trusted to be able to work with several well-known companies and institutions, such as BCA and BPJS Kesehatan. This funding will certainly support the company's strategy and be a motivation for us to continue to support MSMEs in growing especially in times of crisis like now."
This Series C funding also supports Modalku to continue to innovate in enhancing the user experience and benefits of Modalku users, both in terms of borrowers and lenders. As a step to increase trust especially in these conditions, Modalku actively communicates the adjustments made to loans funded by certain lenders. These adjustments will affect the lender's portfolio, such as the time and number of loans to be returned. Modalku will try to take solutive steps so that lenders avoid the effects of COVID-19.
For information, the Modalku Group has disbursed loans of more than Rp 14 Trillion to MSMEs in Indonesia, Singapore and Malaysia. Modalku in Indonesia alone accounts for approximately 60% of the total loan disbursement. Previously, Modalku had secured Series B funding in 2018 worth USD 25 million supported by SoftBank Ventures Korea, Sequoia India, Alpha JWC Ventures, and Golden Gate Ventures. (LM)