Komunal has announced that it secured new investments amounting to $8.5 million to fund its mission to accelerate financial inclusion and strengthen the neo-rural bank ecosystem in Indonesia, especially outside the Greater Jakarta area.
The fintech company, which was the first to digitize BPR in accelerating the financial inclusion in Indonesia’s tier 2 and tier 3 cities, said that the funding round was led by East Ventures (Growth fund). It was also participated by AlphaTrio Sustainable Technology Fund, Skystar Capital, Sovereign’s Capital, Ozora, and Gobi Partners.
“We are humbled by the overwhelming support from our investors, rural bank partners, and loyal users. It was very fulfilling to see how digitalization has helped our rural bank partners to thrive during the pandemic recovery period and enabled our loyal users to access attractive deposit and loan products digitally. In 2023, we hope to reach a wider market, particularly BPR users and partners outside of Java and Bali,” said Hendry Lieviant, CEO of Komunal.
Lieviant said he is very optimistic that the collaboration between fintech and incumbent banks, including rural banks, will create a very strong synergy.
Komunal sees the potential for partnerships with BPRs to increase financial inclusion for MSMEs in tier 2 and 3 cities, he added.
The fintech industry has enormous potential in Indonesia, particularly in fostering the growth of MSMEs. Fintech help SMEs manage their finances and capital with convenience and efficiency.
Komunal has channeled $230 million (equivalent to IDR 3.6 billion) worth of deposits and loans to local BPRs and MSMEs in 2022.
This represents a 350% YoY growth compared to 2021, wherein the number of deposits and loans disbursed amounted to $50 million (IDR 781 billion). Transaction volume is expected to exceed $500 million this 2023.
Moreover, Komunal also recorded positive EBITDA since October 2022 while experiencing growth and profitability at the same time.
Since its launch, more than 220 BPRs (rural banks) from across 19 provinces in Indonesia have joined the DepositoBPR by Komunal platform, thus enabling its users to make deposits digitally with hundreds of BPRs across the country. They no longer have to physically visit the banks as they also get to enjoy higher interest rates on governmentguaranteed deposits.
To date, Komunal has two main business lines: DepositoBPR by Komunal and Komunal P2P Lending. Both companies are involved in the fintech industry and have a mission to accelerate financial inclusion in Indonesia.
DepositoBPR is the first BPR deposit marketplace application in Indonesia while Komunal P2P Lending is a peer-to-peer lending platform that connects potential MSMEs with lenders to support economic growth in Indonesia.
Willson Cuaca, Co-Founder and Managing Partner of East Ventures, said
that as an early supporter of Komunal, they have witnessed the company’s growth and many achievements.
He believes in the resilience and innovation that Hendry and his team has shown to further accelerate digitalization in the financial sector.
Meanwhile, Komunal has announced the appointment of Dr. Peter Jacobs as Commissioner effective January 1, 2023.
Dr. Jacobs has worked for Bank Indonesia since 1991 and held a variety of strategic positions, including coordinator of the 2018 World Bank and IMF meetings.
He was also Exeucitive Director – Head of the Banking Service, Licensing, and Treasury Operation Department at the Bank Indonesia
from 2019 to 2022.
Dr. Jacobs said that Komunal’s initiative to create a strong synergy with BPRs throughout Indonesia is a smart innovation that can promote financial inclusion.
With his appointment, Komunal intends to make several other senior hires to further accelerate its mission in providing the best service to MSMEs, rural banks and the society at large.
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