Indonesian microfinance company Amartha secures $17.5m

Indonesian microfinance company Amartha secures $17.5m

Indonesian microfinance technology company, Amartha, has received a $17.5m equity investment from the Accion Digital Transformation Fund.

The investment aims to enhance Amartha’s platform, which provides financial products and services to underserved women-led small businesses in rural areas across Indonesia, leveraging data and AI.

Amartha, known for its digital financial infrastructure, connects microbusinesses in Tier 2 and 3 cities outside Java Island. By offering an embedded lending and funding model for both institutional and retail investors, Amartha delivers personalised financial solutions. The company also provides payment services and a proprietary credit scoring system, making it a comprehensive microfinance technology option for digitising Indonesia’s grassroots communities. So far, Amartha has disbursed over 25 trillion Indonesian rupiah ($1.6bn) in working capital to more than 2.5 million women-led businesses across Java, Sumatra, Nusa Tenggara, Sulawesi, and Kalimantan.

The new funding will help Amartha expand its product offerings, strengthen its audience analytics system, and drive the adoption of its digital services, thus connecting more people and small businesses to responsible financial services. In addition to financial capital, the Accion Digital Transformation Fund will provide strategic support to enhance customer engagement, operational efficiency, and product innovation through digital technologies.

Njord Andrewes, managing partner of Accion Transformation Capital and member of Amartha’s Board of Commissioners, said, “Through its unique business model and marketplace platform, we believe Amartha is in a prime position to connect many women-led small businesses across Indonesia to responsible financial services for the first time. We are partnering with Amartha to provide both strategic support and growth capital, as they work to reach new clients in underserved areas using digital technologies.”

Ramdhan Anggakaradibrata, chief financial officer of Amartha, added, “Amartha and Accion have shared objectives — reducing inequality in access to financial services. The latest funding from Accion Digital Transformation Fund will help strengthen our ability to leverage the power of data and AI. We will not only meet the current needs of our customers but also anticipate future trends and challenges. This approach will help us remain at the forefront of fintech innovation, continually evolving to provide cutting-edge financial solutions that empower our customers and drive sustainable growth.”

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