JAKARTA -- Indonesian P2P lender Modalku, which operates as Funding Societies in Singapore, has raised $40 million in a Series C funding round from undisclosed existing and new investors.
The company said it will use the proceeds to improve the user experience and to benefit Modalku users, both borrowers and lenders. The funding will also support micro, small and medium-size enterprises, or MSMEs, that have been affected by COVID-19 by offering restructuring options and accelerating the flow of capital to sectors that need it, such as health care.
To date, Modalku has disbursed loans of more than 14 trillion rupiah ($895 million) to MSMEs in Indonesia, Singapore, and Malaysia. Indonesia accounts for around 60% of Modalku's total loan disbursements.
"Amid the global pandemic, we are very grateful to [have] gain[ed] trust from investors. The funding will support the company's strategy and [allow] us to continue to support MSMEs," Modalku co-founder and CEO Reynold Wijaya said in a statement.
According to the company, retailing has been hit hard by the pandemic. But it says only 1% of its active borrowers are seeking to have their loans restructured. Modalku's non-performing loans are currently 0.8% of the total, well below the 5% limit set for the industry by the Financial Services Authority.
"Our NPL level can still be absorbed, as there are other MSMEs and business sectors that are still able to grow and require support," said Iwan Kurniawan, Modalku's co-founder and chief operating officer.
In December in 2019, the company raised an undisclosed amount in debt funding from global impact investor Triodos Investment Management. It also invested in Indonesian startup Paper.id.
Modalku had secured $25 million in Series B funding in 2018 from SoftBank Ventures Korea, Sequoia India, Alpha JWC Ventures, and Golden Gate Ventures.
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