AwanTunai, an Indonesian FinTech startup, has recently made headlines by closing its Series B funding round with a significant $27.5m.
The Jakarta-based firm, known for its innovative point-of-sale financing solutions, has successfully exceeded its initial $25m target, according to a report from FinTech News Singapore.
The latest injection of capital was led by an impressive cohort of investors, including Norfund, the Norwegian government’s investment fund focused on developing countries, MUFG Innovation Partners (MUIP) – the innovation wing of Japan’s MUFG Bank, and OP FinnFund, a Finnish impact investment firm.
At its core, AwanTunai aims to revolutionise the traditional cash economy in Indonesia through its accessible inventory purchase financing, coupled with integrated online ordering and inventory management solutions. Since its inception in 2017 by Dino Setiawan and former Gojek executives Windy Natriavi and Rama Notowidigdo, the company has been committed to empowering wholesalers and micro-merchants with digital tools to enhance their operations.
With the fresh funds, AwanTunai plans to bolster its equity base, which in turn will enable the expansion of lending capital facilities. The ultimate goal is to support over $2bn of annualised inventory purchase financing by the year’s end, a significant leap towards digitising the economy and supporting local businesses.
AwanTunai has consistently focused on serving the traditional general trade sector, which addresses 80% of the Indonesian population’s daily needs. This strategic focus has allowed the company to scale efficiently, avoiding the pitfalls of over-diversification.
In a revealing interview with DealStreetAsia, AwanTunai CEO and founder Dino Setiawan expressed the possibility of further expanding the funding round due to ongoing interest from large private equity firms and global investors. Setiawan also highlighted the startup’s robust business model and its trajectory towards profitability, noting that AwanTunai is EBITDA positive and on track to achieve positive profit after tax by the end of the year.
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