What are some examples of best fintech startups in Indonesia that are popular and growing rapidly? Here’s the list.
Today, unlimited technology is constantly evolving and experiencing significant increases. The rapid development of technology requires each individual to work hard and continue to innovate in order to create high quality and ease of use output.
One of the online businesses that have developed in the community is e-commerce or online stores. This business provides facilities for them to market their products and provide convenience for sellers and buyers. In addition to e-commerce, technology players were also surprised by the emergence of a new industry called financial technology or commonly abbreviated as FinTech.
In this article, we will discuss what a fintech company is and various examples of top fintech companies in Indonesia that raises funding from venture capital.
Read also: Main Role of Venture Capital on Startup Business
Understanding, Types, and Benefits of FinTech
What is fintech company? FinTech is an industry that combines finance and technology. The purpose of fintech companies is to make it easier for people to access financial products, conduct financial transactions, and improve understanding of literacy in the financial field.
There are various Indonesian FinTech companies. The types of FinTech companies in Indonesia are generally dominated by startup companies, such as payments, retail investments, leading or lending, financial planning, crowdfunding, remittances, and financial research.
So far, the presence of FinTech startup companies is able to make startup companies more well developed. The company’s business development also tends to be faster and more consistent. This certainly shows that Indonesia can also be competent in this field. Seeing this opportunity is good enough to make FinTech companies continue to grow over time.
Most Popular Fintech Companies in Indonesia
Read also: Important Positions in Startup Organizational Structure
Examples of the Most Popular Fintech Companies in Indonesia
Currently, FinTech Indonesia companies are experiencing very rapid growth. In just a few years, fintech startup companies in Indonesia have been growing in terms of number. Therefore, IDC financial highlights, continue to make observations to assess the quality of FinTech companies in Indonesia. Some aspects that are considered are the intended market, investments, user adoption, marketing, and their chances of survival.
The following are the most popular and fast-growing Indonesian FinTech companies according to IDC financial highlights. These companies have also been registered with the Financial Services Authorization (OJK), so the credibility of the company is unquestionable.
1. Ajaib
Currently, there are many financial technology companies and fintech products that make the millennial generation as their target, not least Ajaib which is an application that makes it easier for millennials to invest online, so that investments can be made easily and quickly. Ajaib helps make it easier for novice investors, especially young people who are still new to invest in the capital market (mutual funds) by offering ease of investing starting from Rp. 10,000 only. Ajaib has partnered with several well-known investment managers such as Syailendra, Prospera, Ciptadana, and many more.
Ajaib was founded by founders from 3 countries, namely Anderson Sumarli, Yada Piyajomkwan, and Kevin Lee. According to Ajaib Co-Founder Anderson Sumarli, Ajaib has raised tens of billions of rupiah in investment funds from users. Currently, they have received fresh funding from Y Combinator of US $ 120 thousand (around Rp1.7 billion).
Also read: Best Venture Capital in Southeast Asia
2. Kredivo
Kredivo is one of the top fintech in Indonesia with the concept of loans without credit cards with a fast registration process and disbursement of funds. This online loan startup offers convenience in shopping without a credit card at several e-commerce sites and popular outlets such as gadget and electronic outlets, fashion, home appliances to outlets that offer services. Kredivo also offers convenience in cash loans with the lowest interest compared to similar companies.
On July 25, 2018, Kredivo announced that it had received Series B funding worth US$30 million. Startup investors participating in this funding include Alpha JWC Ventures, Jungle Ventures, Openspace Ventures, GMO Venture Partners, and 500 Startups.
3. Modalku
Another example of an Indonesian fintech company is Modalku, a peer-to-peer lending platform that allows owners (SMEs) to be able to apply for loans of 50 million to 500 million rupiah within three to twelve months. If the loan application is approved, the application will be displayed on the Modalku website. This is so that prospective lenders or investors can see the needs of SMEs.
If the loan amount expected by the SME owner is successfully fulfilled within the predetermined time span, then Modalku will immediately disburse funds. In accordance with the agreement agreed at the beginning, Modalku will withdraw commissions of 3 percent from borrowers and 3 to 4 percent from investors. The Modalku site began launching in January 2016 and has received Series B funding in 2018 worth 25 million dollars.
Read also: What is Venture Capital? Definition, Benefits, How It Works
4. OnlinePajak
OnlinePajak is a fintech company in Indonesia in the form of an application that makes it easy for business people to make transactions, manage payroll, and perform tax obligations such as calculating, depositing, and reporting corporate taxes.
This Indonesian fintech that was founded in 2014 has been included in the list of unicorn startups. Reporting from Bisnis.com, OnlinePajak’s valuation reached US $ 1.7 billion or around Rp. 24.75 trillion in July 2021.
5. OVO
OVO can be said to be a strong competitor to GO-PAY. How not, there are currently many “cashback wars” between OVO and GO-PAY in several merchants in Indonesia. OVO is just like GO-PAY, a digital wallet application that makes it easy for users to make cashless transactions. With promotions that attract customers, OVO also collaborates with many merchants and has even collaborated with more than 200,000 SMEs spread across Indonesia.
OVO is under LIPPO GROUP with Albert Lucius as its Chief Product Officer. Albert Lucius said, in addition to cashless payments, OVO’s service coverage has also been expanded to include Paylater (for transactions on Tokopedia) and business capital loans and all these services have obtained permission from the Financial Services Authority (OJK).
Also read: Main Role of Venture Capital on Startup Business
6. GO-PAY
To support various services owned by the GO-JEK on demand application, GO-JEK finally created a service called GO-PAY to support cashless payment services. Initially, GO-PAY itself had the name GO-JEK credit and changed its name after one year later. Currently, this fintech in Indonesia has also acquired PonselPay which is a company that owns e-money licenses to support its operations.
Currently, the majority of GO-JEK users have taken advantage of this service because many customers are spoiled with various discounts and gifts that are quite tempting and can be exchanged for points. Not only that, currently GO-PAY can not only be used as a transaction tool in the GO-JEK application, but also equipped with several features such as balance transfers, cash withdrawals, and also to transact at various merchants in the near future.
7. DANA
Another example of a fintech company is Dana. This company is a digital financial service based in Jakarta, Indonesia, and was founded in 2018.
DANA has been registered with Bank Indonesia with four licenses, including electronic money, digital wallet, and Digital Financial Liquidity (LKD), and for sending money.
Read also: Seed Funding and Ways to Get Investors for Startups
8. Spenmo
Spenmo is a cost management software that helps in managing finances. This fintech company’s product combines dashboard features with various currencies, corporate cards, automatic bill payments, free payroll payments, and employee expense claims.
9. Pace
Pace is a fintech startup from Singapore. The company provides an online payment platform that allows users to pay for their purchases in three interest-free installments.
10. Whiz
Whiz is a fintech in the form of a combination of piggy banks, financial recording tools, and digital wallets that facilitate financial education through daily activities. This Indonesian fintech startup targets financial literacy at the family level.
Thus some explanations and examples of best Indonesian FinTech companies that are quite popular. Stay careful in choosing a FinTech company that you will use because currently there are many top FinTech companies that are not clear about their existence. Try to choose a FinTech startup company that has been registered with the Financial Services Authorization (OJK).
