AwanTunai, a supply chain financing services startup in Indonesia, has raised up to US$20 million, led by private debt investor Accial Capital.
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The fintech startup intends to use the funds to accelerate the expansion of its wholesaler supplier financing and AwanTempo, its flagship inventory purchase financing programme that enables merchants to seize the opportunity to sell more, earn more and improve cash flow management.
For Indonesia’s 60 million micro-merchants, cash remains a mainstay of doing business. Major hurdles in lending to merchants have traditionally been a lack of data for formal credit underwriting and market fragmentation.
Founded in 2017 by Dino Setiawan, Windy Natriavi and Rama Notowidigdo, AwanTunai seeks to digitise the country’s offline, fast-moving consumer goods (FMCG) and food supply chain by providing micro-merchants access to supply chain financing services.
Leveraging valuable merchant transaction data that is predictive of credit performance, AwanTunai can originate low-interest financing to this underserved and unbanked segment.
Working with wholesalers, AwanTunai serves underserved micro SMEs (‘warung’ grocery stores) with inventory ordering, digital payments, and low cost inventory purchase financing.
“Our vision is affordable financing for the millions of underserved micro businesses that employ 90 per cent of Indonesia’s workforce. We collaborate with banks and funds that understand our transaction data based risk management. Low-cost institutional capital accessing Indonesia’s vast unbanked and underbanked market is the way to achieve impact at scale,” said Dino Setiawan, CEO of AwanTunai.
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In 2017, AwanTunai raised a US$4.3 million Series A round, led by Insignia Venture Partners and AMTD group.
Accial Capital is an impact-focused, tech-enabled investor in small business and consumer loan portfolios in Latin America and Southeast Asia.
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Image Credit: AwanTunai
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