Heaptalk, Jakarta — Indonesia-based fintech JULO declared its remarkable annual recurring revenue of over USD120 million, approximately Rp1.87 trillion, with total loan disbursement experiencing a 50% growth last year. The milestone comes alongside this fintech reporting profit breakeven in December 2023.
On the other hand, the startup’s latest accomplishment also includes a 73% increase in revenue last year. JULO startup disbursed over USD454 million in loans last year, bringing its total disbursements since 2016 to approximately US$51 billion. The firm reports a remarkable 70%+ retention rate per cohort, which has reduced loan acquisition expenses and enhanced operational efficiency.
Responding to the startup’s accomplishment, JULO’s Group President, Ankur Mehrotra, delivered that the startup’s critical financial objective is to generate sustainable profitability for our shareholders and provide a liquidity event, such as an IPO plan.
“We believe that we are on the right track as we optimize our core product, manage our risk efficiently through continued investment and attention to risk management, and further diversify our product portfolio, ultimately becoming a fully integrated financial service platform,” added Ankur.
JULO has also laid the foundation to build a whole stack of digital financial (neobanking) services for the middle-market segment in the country that President Jokowi leads. The company observed that this segment provides a near US$100 billion opportunity in Indonesia. For this reason, the fintech startup released non-credit products, including insurance, as of last year.
Beyond financial services, the company also launched a local campaign in partnership with UNICEF in the country, aiming to elevate the quality of life for Indonesian children through donations made from every transaction. This initiative highlights JULO’s intention to deliver societal impact and underscores the positive effects of its operations beyond financial metrics.
JULO’s growth is bolstered by partnerships with leading financial institutions, including global firms like Credit Saison, and local giants, including Bank Sampoerna and Superbank, to empower disbursement to the middle-income segment in the country.
In 2022, fintech JULO also secured US$80 million in Series B funding from Credit Saison, with an equity combination at US$30 million as well as a credit facility worth US$50 million. JULO used the equity of US$30 million to develop data analysis systems, product development, marketing, and customer acquisition plans by adding human resources in developers, data scientists, and business intelligence. Meanwhile, the company allocated around US$50 million in credit facility funds to facilitate loan funds on the platform.
Backed by leading investors, including AC Ventures, Credit Saison, Quona Capital, and Saratoga, the startup was founded to carry out more reachable financing access for society by leveraging holistic behavioral data for innovative underwriting. This strategic approach has allowed JULO to launch and manage virtual credit card products tailored to the needs of the country’s middle-income segment.
