an Indonesia-based lending-as-a-service infrastructure provider Finfra has raised US$2.5 million in a funding round led by Cento Ventures with participation from Accion Venture Lab, Z Venture Capital, Matiss Ansviesulis (founder of Avafin), and existing investors
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Finfra’s existing investors include Hustle Fund, Firstpick, DS/X Ventures, Seedstars, Fintech Nation Fund, BADideas Fund and Gold Dragon Ventures.
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The new funds will be used to expand customer onboarding capabilities and achieve profitability targets. Additionally, Finfra intends to improve its data analytics, scoring, and risk assessment products.
In most parts of Southeast Asia, small-and-medium enterprises (SMEs) form the backbone of the economy and this is no exception for a massive country like Indonesia. There are 64.2 million MSMEs that contribute 61% of the country’s GDP, employing over 100 million people.
The fintech firm has also partnered with Tyme Group, the multi-country digital banking group that owns TymeBank in South Africa and GoTyme Bank in the Philippines. It intends to support Tyme’s expansion into Indonesia as part of its overall Southeast Asia growth strategy, following its launches in the Philippines and Vietnam. Tyme can use Finfra’s platform to expand its embedded lending solutions, including merchant cash advances.
“Southeast Asia is a central part of Tyme Group’s growth strategy, and Indonesia has long been a goal for our Group. Partnering with Finfra allows us to tap into Indonesia’s immense SME segment by leveraging its robust embedded lending infrastructure and network within digital platforms. This collaboration not only accelerates our mission of driving financial access but also enables us to offer innovative lending solutions to a broader audience of businesses and consumers in the region at an unprecedented speed,” Coen Jonker, Executive Chairman at Tyme Group, said.
Acknowledging the importance of digitisation, the Indonesian government is on a mission to help 30 million—nearly half of the country’s total—local SMEs to enter the digital space in the next few years. But digital onboarding is just the first step — these digital SMEs need credit to support their business growth.
This has driven the majority of digital platforms serving Indonesian consumers and SMEs to actively pursue credit products as part of their business model. Finfra’s embedded lending product is perfectly timed for Indonesia’s growing digital economy, allowing a wide range of digital platforms to lend to their customers through a powerful suite of credit product building tools that are in compliance with Indonesian regulations.
In short, Finfra’s platform serves as the bridge between digital platforms and capital suppliers, offering end-to-end loan management systems, scoring, portfolio analytics and access to debt capital.
Its model is further validated through its major partnership with multi-country digital banking group Tyme Group to support their expansion into Indonesia. Through this collaboration, Tyme will leverage Finfra’s suite of credit products to offer embedded lending solutions such as merchant cash advances across Indonesia.
“As more businesses embed lending services and products, and lenders eye the Indonesian market, our platform’s ability to connect both sides is transformative. This collaboration, supported by our investors, puts us on the path to profitability and strengthens our mission to drive financial inclusion and expand sustainable financing options in Indonesia”, said Markus Prommik, co-founder and CEO of Finfra.
In 2016, Markus co-founded Danabijak, an Indonesia-based licensed peer-to-peer lending platform together with Reinis Simanovskis. The experience at Danabijak would eventually lead both co-founders to establish Finfra in 2022.
Since its last fundraise, Finfra has doubled its client base and expects to more than double its quarterly gross profit in Q4 2024 compared to Q4 2023. To date, the company has facilitated over $65 million in credit to underserved Indonesian businesses and business owners.
Cento is honoured to be supporting the Finfra team in their journey of further developing embedded lending across Indonesia. We believe that they have just the right vision and execution precision to deliver an efficient and compliant infrastructure that enables wider access to financing for millions of local SMEs.
About Finfra
Founded in 2022, From application to decisioning to operations – Finfra provides the necessary infrastructure and services for technology companies to embed financial services into their environment through a seamless integration for businesses in South East Asia.
