Indonesian fintech lender UangCermat has raised $26.4 million through a mix of equity and credit facilities, the company said in a statement on Thursday (Jan 22).
The total raise comprises a $6.4 million Series A equity round, co-led by existing backer Singapore’s Cocoon Capital, alongside NP Consulting and IFP Securities, alongside a $20 million structured credit facility provided by SixPoint Capital Management, a US-based private credit investor, marking its foray in the region.
UangCermat operates a “phygital” lending model that combines digital workflows with offline distribution, focusing on payroll-linked loans primarily for blue-collar workers in Indonesia. It also offers fintech-as-a-service (FaaS) infrastructure to banks and microfinance institutions seeking to digitalise credit origination and collections processes.
Established in 2019 by Shaiful Mustaafa and Edward Kumar, UangCermat said it has served over 100,000 registered users.
The company said the financing will support “responsible expansion of its short-tenor, payroll-linked loan portfolio” while maintaining conservative underwriting and strengthening governance, compliance and technology capabilities.
Meanwhile, the equity capital is expected to reinforce long-term stability and operating discipline, while the credit facility will be used to scale the loan book.
“This round provides us with the financial capability to not just scale our internal operations but also expand with more intention toward improving the robustness and digital offerings for local lenders such as smaller banks and microfinance players who are technologically constrained,” said Shaiful Mustaafa, co-founder and CEO of UangCermat.
“The fintech industry has faced many challenges in recent years, and UangCermat seeks to provide a tech-first infrastructure that ultimately creates efficient financial inclusion for the underbanked without compromising on governance and compliance,” Mustaafa added.
SixPoint Capital described its first investment in Southeast Asia as a validation of UangCermat’s operating model and potential impact in expanding access to credit.
“They are solving a significant pain point, and we could not be more pleased to support them as they provide significant and meaningful impact to the unbanked and under-banked populations throughout Indonesia [..],” said A.J. Davidson, CIO, CEO, and co-founder of SixPoint Capital.
Cocoon Capital, a returning backer since the startup’s early days in 2019, said it continues to see long-term value in UangCermat’s approach. “[..] The opportunities within the fintech industry in Indonesia are clear and we continue to believe that the team is on the right track to delivering tangible, long-term value creation for all stakeholders,” said the VC.
