Starting out as loan platform for personal life events such as weddings and Hajj pilgrimage, Taralite now focusses on providing working capital for small online businesses.
Jakarta-based P2P lending platform Taralite today announced that it has a raised a funding round from Japanese fintech conglomerate SBI Group.
According to a press statement, the valuation of the round was undisclosed, but the total commitment is US$6.3 million, “including funds for Taralite’s lending services.”
Taralite plans to use the funding to build a “world class” R&D team that would build algorithm for its future plan to be a one stop shop. Some examples of the new services that the startup is building are insurance and credit card algorithms.
SBI Group is considered the pioneer of fintech in Japan and hold the country’s largest online securities trading company.
SBI Group is also affiliated with pure-play online bank, several type of insurance companies, biotechnology business, and a venture capital arm.
It operates a US$300 million finTech-focussed fund.
Taralite started out as a lending platform that finances personal life events such as weddings and Hajj pilgrimage, but since April 2015 it switched focus to provide working capital for small businesses that operate online.
“Our vision since the beginning is to free people from financial worries through our mission, which is to provide affordable loans for the underserved segment. Initially, we thought wedding is where the need is, but after a couple of months, we discovered more needs on the working capital side. That’s when we decided to switch into a general loan provider as opposed to just wedding,” explained Taralite CEO Abraham Viktor in an email to e27.
To achieve this, it partners with various online marketplaces and booking platform such as Tokopedia, Bukalapak, Lazada, MatahariMall, and Airy Rooms.
Taralite offers swift application processes and affordable loans starting from 0.99 per cent per month. It claimed to have disbursed loans to 1,000 borrowers with more than 70 per cent retention rate.
It was one of the startups incubated in the second batch of Global Entrepreneurship Program Indonesia (GEPI), and has raised an undisclosed seed funding round from angel investment network ANGIN.
Taralite cited US-based Capital One as their inspiration to achieve their long-term goal.
“We are doing what Capital One and Ant Financials did few years ago. They were committed to serving an underserved segment and grew strong from there. They expanded from just one product offering into a one stop shop for the customers they are serving. We want to follow their footsteps and focus on serving the underserved segment in Indonesia,” said Taralite CEO Abraham Viktor.