Indonesian digital wallet, LinkAja, is rumoured to be on the brink of closing a new round of funding, according to a report from Nikkei Asia.
As a company known for digitally facilitating financial transactions, LinkAja has an extensive reach, backed by several state-owned firms, including telecom titan Telkomsel and energy behemoth Pertamina.
While specific figures have yet to be disclosed, the funders are expected to comprise Telkomsel, a selection of state-owned banks, and an anonymous global investor. This anticipated round of capital raising is set to increase LinkAja’s cash flow significantly.
In operation since 2019, LinkAja started as a B2C focused digital wallet but pivoted towards a business-to-business-to-consumer (B2B2C) model in early 2022. It concentrates on offering financial transaction facilitation in the supply chain ecosystem of businesses like DigiPOS, a Telkomsel application, underscoring its focus on the intersection between traditional and digital value chains.
The prospective funds will be earmarked for extending LinkAja’s operational runway. LinkAja’s chief finance and strategy officer, Reza Ari Wibowo, has voiced a keen focus on the company achieving positive earnings before interest, taxes, depreciation and amortisation (EBITDA) soon, stating that they no longer require external support for operational expenses.
Additional aspects of LinkAja’s operations include its focus on the lending sector, following the acquisition of iGrow, now rebranded as LinkAja Modalin in 2021. The lending branch encompasses invoice financing, retailer financing and agri-ecosystem financing.
LinkAja chief finance and strategy officer Reza Ari Wibowo said, “We will announce soon if any fundraising round is closed.” He also stated that, “By leveraging the opportunity and strengthening each platform, LinkAja believes it will bring benefit to each party as well as accelerating digital financial inclusion in Indonesia.”
The digital wallet has seen notable investment in the past, with its last publicised funding round being a $100m Series B in late 2020. The round was led by Southeast Asian superapp Grab, with additional backing from Telkomsel, Mandiri Capital Indonesia, and BRI Ventures. Furthermore, in March 2021, Grab’s competitor Gojek made an undisclosed investment in LinkAja.
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