JAKARTA -- Indonesian fintech startup AwanTunai announced on Monday that it has raised $20 million via a debt facility from Accial Capital.
The company will use the funds to finance loans to suppliers and micro-merchants, according to a statement.
AwanTunai plans to grow AwanTempo, its inventory financing product that allows merchants to improve cash-flow management. The startup says the lack of transaction records for the country's 60 million micro-merchants remains the biggest obstacle for obtaining loans from banks and other financial institutions.
Founded in 2017 by Dino Setiawan, Windy Natriavi and Rama Notowidigdo, AwanTunai aims to digitize the country's fast-moving, offline consumer goods and food supply chain by providing micro-merchants access to financing services. The company helps its users with inventory ordering, digital payments and low-cost inventory purchase financing.
AwanTunai says it can originate low-interest financing to underserved and unbanked merchants by leveraging merchant transaction data recorded on its app.
"Our vision is affordable financing for the millions of underserved micro businesses that employ 90% of Indonesia's workforce," said CEO Dino Setiawan. "We collaborate with banks and funds that understand our transaction data-based risk management. Low-cost institutional capital accessing Indonesia's vast unbanked and underbanked market is the way to achieve impact at scale."
In 2018, the company raised $4.3 million in a Series A round led by Insignia Venture Partners and AMTD Group.
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