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Supporting MSME, Modalku introduces Modalku Finance

22 November 2022 18:06

JAKARTA – Modalku Group is entering the multifinancing sector through its recent acquisition of PT Buana Sejahtera Multidana (BSM), a veteran actor in the multifinancing industry since 2012. Despite its involvement in the multifinancing sector, Modalku intends to stay loyal to its vision of supporting the growth of Micro, Small, and Medium Enterprises (MSME).

During the Press Conference of the Launching of Modalku Finance today (22/11), Steven Gunawan, President Director of Modalku Finance, admitted that Modalku had eyed the prospect of expanding into multifinancing since 2018-2019. However, only after securing the license from the Financial Services Authority (OJK) in 2021 did the company officially acquire the majority of shares of BSM and turn it into PT Modalku Finansial Indonesia, now also known as Modalku Finance.

Reynold Wijaya, Co-Founder of Modalku, also mentioned that choosing BSM as its acquisition target had been carefully deliberated. The number of multifinancing companies in Indonesia has continued to decline yearly, hitting 154 mark in September 2022 from 164 companies in September 2021 and leaving a smaller pool of candidate for acquisition. In the end, BSM is considered an ideal target due to its extensive experience in multifinancing, which will be paired with Modalku’s expertise in technology and its P2P portfolio to establish Modalku Finance.

Although Modalku Finance will be engaged in the multifinancing sector, which is associated with consumer financing, it will carry the mission of Modalku Group to empower MSMEs through production financing. “Through Modalku Finance, we hope to attain a more extensive market accessibility by providing more varied products with a higher working capital limit and a higher number of funding options,” Wijaya states in the press release of the Launching of Modalku Finance. He and Gunawan acknowledge that there is a certain limit to Modalku’s capability, as a P2P lending platform, in helping these small businesses to grow, as it is only allowed to distribute credit of IDR 2 billion at most. “If we could provide more, we surely can help them more,” Gunawan added.

For the record, some of Modalku Finance’s existing products include working capital financing and investment financing, which are aimed towards MSME players, allowing them to request for credit of up to IDR 25 billion. On top of this, Modalku Finance will add a multi-purpose financing option, which is intended for consumer financing segment with a lower credit request, starting from IDR 50 million, and a longer tenor of up to 60 months. (ZH)

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