Indonesian Startup Finfra Secures $1M Funding to Fuel Expansion of Embedded Finance Solutions

Indonesian startup, Finfra, has secured $1 million in new funding to expand its embedded finance offerings. The funding round saw participation from several prominent investors, including DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund

The startup plans to utilize the recently raised $1 million funding to focus on product development and expand its engineering, data, and finance teams.The funding will help strengthen the company’s capabilities and enable it to better cater to the growing demand for embedded finance solutions in the Indonesian market. Finfra originated from Danabijak, a profitable consumer financial services provider, and will continue to operate as a subsidiary of Finfra.

As Indonesia‘s digital economy has experienced significant growth in recent years, reaching a value of $77 billion, access to credit remains limited, with only 3% of Indonesians owning a credit card. Finfra aims to address this gap by providing the necessary technology infrastructure for online businesses to offer embedded finance products. The newly raised funds will support the company’s product development efforts and enable it to expand its team to better serve the market’s needs.

Finfra has emerged as a key player in the embedded finance space, providing underbanked businesses and non-financial digital platforms with the ability to integrate financial products and services, focusing on credit lending.

The company’s approach focuses on adherence to regulatory requirements while offering a complete loan management system, scoring capabilities, portfolio analytics, and access to debt capital. By catering to areas overlooked by traditional banks, Finfra plans to drive financial inclusion and deliver sophisticated fintech solutions. 

“There’s a real demand for comprehensive credit-centric services and lending among Indonesian small businesses, particularly as it relates to providing lending as a service. We’re determined to make it not only feasible but genuinely easy for Southeast Asian companies to do so,” Markus Prommik, co-founder and CEO of Finfra, stated while speaking to the media. 

Finfra adopts an industry-agnostic approach but places emphasis on digital supply chain platforms, agritech firms, and merchant e-commerce platforms, as highlighted by co-founder and CEO Markus Prommik. The startup’s loan management system empowers businesses to extend credit offerings to their clients through their respective platforms. 

Notably, invoice financing and purchase financing solutions are among the widespread applications of Finfra’s services. While predominantly serving the B2B sector, Finfra’s solutions can also be tailored for B2C applications.

With its recent $1 million funding round and its commitment to expanding its engineering, data, and finance teams, Finfra is well-positioned to scale its operations and further empower underbanked businesses in Indonesia.