Heaptalk, Jakarta — Indonesia-based fintech startup AwanTunai closed a new investment worth US$27.5 million in a Series B funding round from multiple notable investors, spanning Norwegian-government investment Northfund, MUFG Innovation Partner (MUIP), and Finland’s investment firm OP Finnfund.
This fund allows the startup to grow its equity base by providing the expansion of lending capital facilities. With this funding completion, AwanTunai targets to close over USD2 billion, approximately Rp31 trillion, of annualized inventory by this year’s end, which also advances management risk technology.
AwanTani’s risk management and credit scoring system are critical foundations for its business. With this innovation, the company claims its business model is superior, specifically in channeling funds to MSMEs.
Leading the equity fund, Northfund Representative, admitted that the company is impressed with the AwanTunai’s measure in leveraging fintech to reach and finance underserved or unbanked segments of the MSME sector in Indonesia with an ERP solution that captures proprietary data across multiple layers of the traditional FMCG supply chain and applies their patented risk management solution to achieve excellent credit performance.
According to the company, the latest funding comes on heel of achieving positive EBITDA. With a unique value proposition as supply chain financing for MSMEs, the company looks forward to being more profitable by the end of this year.
“To achieve initial economies of scale, we only need to increase volume to around US$192 million, around Rp3 trillion per month,” said Dino Setiawan, Co-Founder and CEO of AwanTunai.
Established in 2017, fintech AwanTunai possesses two primary financing access, including stall stock financing services, AwanTempo, and Supplier Financing. Through its integrated ERP, this fintech creates a system that allows MSMEs and FMCG suppliers to have smooth financial access. One of its services, AwanTempo, provides financing for the procurement of goods for stall partners who work with FMCG brand suppliers. As a result, AwanTunai has a network of 8,000 stalls in almost 160 locations in Indonesia.
“We appreciate this startup’s efforts in empowering Indonesian MSMEs in the FMCG sector by digitizing their operations and providing access to financial services. Apart from having accessibility to client operations, AwanTunai utilizes data science to analyze unstructured transaction data to manage loan risk.” President and CEO of MIUP, Nobutake Suzuki, said.
