Heaptalk, Jakarta — Indonesia’s microfinance technology company, Amartha, announced US$17.5 million in equity investment from non-profit organization Accion through Accion Digital Transformation Fund. The investment aims to bolster Amartha by building a platform that provides a full suite of financial products and services to help women-led small businesses in mainly rural areas across the archipelago harness the power of data and AI.
Chief Financial Officer of Amartha, Ramdhan Anggakaradibrata, revealed, “This approach will help us remain at the forefront of fintech innovation, continually evolving to provide cutting-edge financial solutions that empower our customers and drive sustainable growth,”
Amartha has developed a comprehensive digital financial infrastructure connecting microbusinesses in tier 2 and 3 cities outside Java Island. The fintech company simplifies personalized financial solutions that resonate with customers by incorporating an embedded lending and funding model for institutional and retail investors.
The company also offers payment services and a proprietary credit scoring system, granting a highly integrated microfinance technology option for digitizing Indonesia’s grassroots society. Hitherto, Amartha has disbursed over US$1.6 billion in working capital to over 2.5 million women-led businesses in rural and peri-urban areas of Java, Sumatra, Nusa Tenggara, Sulawesi, and Kalimantan.
Amartha’s cross-border funding platform provides grassroots businesses access to capital while representing small businesses as a profitable and impactful alternative investment instrument to institutional investors. In addition to investment capital, Accion will provide strategic support to amplify customer engagement, operational efficiency, and product innovation using digital technologies.
“We believe Amartha is in a prime position to connect many women-led small businesses across Indonesia to responsible financial services for the first time. We are partnering with this fintech company both strategic support and growth capital, as they work to reach new clients in underserved areas using digital technologies,” Managing Partner of Accion Transformation Capital and member of Amartha’s Board of Commissioners, Njord Andrewes, affirmed.
Managed by Accion Impact Management, the Accion Digital Transformation Fund builds on Accion’s experience supporting banks and finance companies worldwide to connect millions of people and small businesses to the digital economy. Investments from the US$152.5 million fund on companies serving MSMEs across South and Southeast Asia, Latin America, and Africa, providing growth capital and strategic support for digital transformation.
