Indonesia’s digital mortgage startup, Ringkas, has secured $3.5 million in seed funding. The funding round was co-led by East Ventures and Crestone Venture Capital, with participation from 500 Global, Teja Ventures, Orvel Ventures, Hustle Fund, and others.
With the fresh capital infusion, Ringkas intends to advance and scale its platform in multiple cities across Indonesia and the secondary market. The company has set ambitious targets to achieve mortgage transactions totaling up to $200 million within the next six to 12 months and launch over 100 projects across 34 cities nationwide.
Co-Founder of Ringkas, Ilya Kravtsov, expressed optimism about the company’s future prospects, stating that the recent funding round would enable them to realize their growth objectives.
Kravtsov also highlighted that this capital infusion would not only fuel the company’s growth but also accelerate the adoption of Ringkas’ innovative technology in traditionally overlooked areas.
By expanding into these underserved regions, Ringkas aims to tackle Indonesia’s housing backlog, which currently stands at a staggering 12.75 million units and continues to grow each year.
Ringkas was established in early 2022 by Ilya Kravtsov, Leroy Pinto, Puguh Widyoko, and Yoko Simon in response to Indonesia’s pressing homeownership challenge. Co-founders developed Ringkas as a digital housing finance platform to provide a comprehensive solution to the low mortgage penetration rate and empower more Indonesians to achieve their homeownership dreams.
Indonesia’s mortgage penetration rate, currently at a modest 3.25 percent of the total GDP, significantly lags behind countries like India and the United States, which have penetration rates of 11 percent and over 50 percent of GDP, respectively.
This stark contrast highlights the immense potential for improvement in Indonesia’s mortgage industry. Compounding the challenge is the housing backlog, which stands at a staggering 12.75 million units and continues to grow yearly.
The company’s vision is to digitize the mortgage process in Indonesia, changing how customers connect with financial institutions. By uniting 12,000 property developers, 1,200 banks, and financial institutions, Ringkas aims to transform the landscape of homeownership in Indonesia and empower millions of individuals in their quest for homeownership.
Partnering with the largest property developers, Ringkas has secured over $2 billion worth of housing supply, demonstrating its strong industry presence.
By collaborating with prominent banks, including BCA, Bank Mandiri, Bank Syariah Indonesia, BRI, Bank CIMB Niaga, Bank Permata, Bank Danamon, Bank Maybank Indonesia, OCBC NISP, UOB Indonesia, Bank Panin, Bank CCB Indonesia, and more, Ringkas has forged key partnerships to support its innovative mortgage ecosystem.
Avina Sugiarto, Partner at East Ventures, expressed enthusiasm for supporting Ringkas in its mission and believes in its ability to provide convenient and efficient home ownership processes for millions of Indonesians.