Modalku, an Indonesia-based peer-to-peer lending fintech startup, successfully surpassed $74 million (Rp 1 trillion) in total crowdfunded MSME loans. This news comes just a little over six months after the company announced it was fully registered with the Otoritas Jasa Keuangan (OJK). As previously reported, Modalku was founded in 2016 and is described as an online marketplace for small businesses to acquire loans and for lenders to fund small business loans to earn returns.
“Our technology-based approach enables borrowers to receive loans for the first time or at lower than market rates, while lenders will earn returns well above that of bank deposits, traditional fixed income products, and life insurance investment-linked products. This marketplace lending model is proven in countries such as USA, UK, China, [and] Singapore.”
Modalku currently operates in three countries Indonesia, Singapore, and Malaysia, with operating as Funding Societies in Singapore and Malaysia. The company so far has received a few awards, such as Global Excellence Award by ITU Telecom. According to Digital News Asia, Reynold Wijaya, co-founder and CEO of Modalku, stated:
“We are very proud of Modalku’s achievements throughout 2017, especially to receive global acknowledgment that we provide positive value for Indonesian society while supporting national financial inclusion efforts. Of course, we would not have been able to attain our accomplishments without the support and trust of various parties, including the public, the Financial Services Authority (OJK) and our lenders and borrowers. We are both grateful and motivated to be even better in 2018. We want to support more deserving MSMEs, in Indonesia and Southeast Asia.”
Hendrikus Passagi, Director of Regulation, Licensing and Supervision of Financial Technology at the Financial Services Authority (OJK), then added:
“Online gotong royong financing or FinTech P2P lending has disbursed more than Rp 2.5 trillion in loans throughout 2017, the number includes Modalku’s contribution. This is an excellent first step for fintech’s support of financial inclusion in Indonesia. OJK hopes that the online gotong royong financing model will offer more financing support towards the agriculture, fishery, and MSME sectors, which needs more support from the financial industry.”