Heaptalk, Jakarta — Indonesia’s fintech startup for microfinance institutions (MFIs), Djoin, obtained undisclosed seed funding from multi-stage venture capital firm 500 Global. The strategic investment will enable the startup to expedite its go-to-market strategy, scale its team to support growing demand, expand its loan platform capabilities, and reach new regions across Indonesia.
The Djoin startup observed that over 50% of Indonesians are underbanked or unbanked, heavily relying on microfinance institutions, specifically credit unions, for financial services. Unlike conventional banks that serve customers in major cities, credit unions reach rural and remote areas, serving half of the nation’s population.
“By empowering microfinance institutions with homegrown technology that enhances their financial sophistication, we are building stronger and more resilient communities in Indonesia,” Adhi Suputra, CEO and Co-Founder of Djoin, affirmed.
This fintech startup provides a comprehensive end-to-end banking platform to meet the needs of the underbanked and unbanked. Their financial services include:
- Banking SaaS to help MFIs and their members deposit, withdraw, receive, send, and monitor transactions
- A credit decision engine to enhance MFI’s credit underwriting processes
- a loan-channeling product to bridge lenders, MFIs, and members
Its data-driven interface significantly improves operational efficiency, optimizes loan management, reduces non-performing loans, and promotes financial stability for microfinance institutions. The innovative solutions empower microfinance institutions to operate more proficiently and seamlessly, allowing them to offer financing to underbanked communities at lower interest rates. This approach helps close the US$140 billion funding gap, fostering a sustainable and inclusive economy for the nation.
Djoin startup has facilitated over US$35 million, approximately Rp700 billion in loan disbursements in 2023. The team onboarded over 80 microfinance institution clients across Bali, East Java, and East Nusa Tenggara, reducing their average non-performing loans (NPL) by 52% from 2022 to 2023.
“To include all of Indonesia in the country’s growing economy, we need to use technology. Credit unions have served many unbanked communities, and using Djoin to help them could enable so much more in the nation.” Managing Partner at 500 Global, Khailee Ng, said.
