Indonesian FinTech platform KoinWorks has raised $108m in Series C funding led by MDI Ventures.
The round also saw participation from previous investors such as Quona Capital, Triodos Investment Management, Saison Capital, ACV and East Ventures.
The funding, which consists of $43m in equity and $65m in debt capital, will be used to scale KoinWorks’ solutions and team as the company aims to hire 400 new employees globally to meet demand. Royal Park Partners acted as exclusive strategic and financial advisor to KoinWorks.
Founded in 2016 and headquartered in Jakarta, KoinWorks focuses on underserved and underbanked markets. It provides small to medium size businesses (SME) owners and freelancers a tool to kick off entrepreneurship and scale their businesses by offering a range of products from SME Neobank: NEO account and card, to credit and productivity tools.
On the KoinWorks platform, users will find a marketplace of integrated applications such as Accounting Software, POS, e-Commerce, HRMS for SME, a Budgeting app alongside KoinWorks staple products such as working capital, invoice factoring, early wage access and treasury management – designed to help business owners get on their feet.
Indonesia, according to KoinWorks, currently has over 62 million SMEs and a projected gross merchandise value of $70bn this year, expected to double in 2025. However, access to finance is the second most cited obstacle SMEs face when trying to grow their businesses in emerging markets and developing countries.
KoinWorks said the funding follows a successful year for the company. Throughout the pandemic demand for its offerings exploded as more businesses were forced to find digital solutions to survive. As a result, the company doubled its user base to more than 1.5 million users.
Benedicto Haryono, CEO and co-founder of KoinWorks, said, “SMEs have been our vision since day one and KoinWorks is here to democratise access to finance, and debunk the myth that it’s only for a specific class of entrepreneurs.
“KoinWorks has shown that opening the doors to capital and providing educational tools helps SMEs grow their sales. And if they take full advantage of all KoinWorks’ financial solutions, the growth potential for SMEs could be limitless.”
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