The microlending startup Uang Teman is processing an expansion plan to the Philippines this year, after acquiring Series B funding which currently in the final process. One of the reasons to choose Philippines is the similar demographic with Indonesia.
Aidil Zulkifli, Uang Teman’s CEO and Founder, explained this expansion as the first for the company since being founded in April 2015. They will have local partners which familiar with the public’s condition. It will use a different brand. The business model will remain the same as previously done by Uang Teman, an online microlending.
“We’re in the Series B funding process. To be announced by the end of July or early August. Funding will be used for business expansion,” Zulkifli told
DailySocial.
Although there aren’t any number or name published yet, he ensures that there will be new investors followed by the existing ones. The value claims to meet the expectation, helps the company to be confident about regional expansion.
“The investors we’re having talks with, they’re very enthusiastic with our business. Moreover, we’ve reached profit since last April. It gives us enough confidence.”
As a profitable company, he claims the company has already found the right business model. In the meantime, it is said to be able to acquire a big number of customers.
Last year, Uang Teman received Series A investment worth of Rp160 billion led by K2 Venture Capital, Enspire VC, Alpha JWC Ventures, and followed by Silicon Valley expert, Tim Draper, through investment institution Draper Associates.
The funding is used to acquire more users, invest in research, and product development. Uang Teman also creates Data Science & Analytics Center in Singapore and India.
Postponing pivot
The company also postpone the pivot plan to be a p2p lending company from its core business as an online micro-lending. According to Zulkifli, it was because the license by OJK has yet to be received, although the company has completed all the requirements.
“After getting the registration letter, we directly applying for the license. It hasn’t been finalized. We also have other priorities, therefore we postpone the pivot.”
Zulkifli mentioned in the previous interview that the old business model will be pivoted to the subsidiary prepared by the company. Uang Teman, it will run the p2p lending business. Thus, Uang Teman will operate in line with OJK regulation according to POJK No 77/2016.
Regarding the business performance, Zulkifli said that Uang Teman has facilitated more than Rp500 billion in the first half of 2018. As the target, this year we need to distribute Rp1 trillion loans. The number is 10 times higher than last year’s realization of Rp130 billion.
“The progress is currently hitting more than 50% of our target. We’re optimistic to achieve it,” he finished.
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Original article is in Indonesian, translated by Kristin Siagian