Indonesian peer to peer lender Amartha has acquired $28 million (appr. IDR 405 billion) in capital from Women’s World Banking Capital Partners II (WWB) and MDI Ventures.
Amartha‘s round also received contributions from existing investors Mandiri Capital Indonesia and UOB Venture Management.
WWB Capital Partners II is the second gender lens investment fund established by Women’s World Banking, an international non-profit organization that’s focused on supporting financial inclusion for women.
This latest investment will be used to close the gender gap in financial inclusion by making strategic investments in established financial service providers. This will be done to address the requirements of women who may be earning low wages. The initiative also intends to expand gender diversity in the working environment (including in management positions). The project will aim to leverage innovative solutions in order to increase community outreach and engagement.
Through this strategic investment, Amartha will be able to open up key opportunities so it can work cooperatively with the Telkom Group to digitize and increase financial inclusion in rural areas of Indonesia.
Amartha aims to empower women micro-entrepreneurs in rural areas by offering group-based business capital loans, which range from IDR 3 million to IDR 10 million. The financial assistance is offered along with financial literacy education and entrepreneurship training programs.
Andi Taufan Garuda Putra, Founder and CEO of Amartha, stated:
“Thank you to all Investors, Lenders, Partners and Amartha Team for their support and trust. What we do together has an impact on the welfare of women in the village and the nation’s economy. This new funding will strengthen Amartha’s group lending (grameen model) business, accelerate product innovation, and launch additional services for borrowers and lenders, such as: digitalization of villages, wholesale shopping, shop loans, crowdfunding, new funding products, and channeling funding to borrowers directly.”
Hadi Wenas, Chief of Commercial Officer Amartha, remarked:
“The Covid-19 pandemic in 2020 provides a challenge for everyone, including us. With persistence, collaboration and a shared vision of ‘Equal Prosperity for Indonesia’ we recovered well and started a journey with new norms, and built a variety of products and services for the micro business sector. By partnering with WWB, we will be able to adopt world best practices where women can benefit from technology to empower themselves and their families to be more prosperous.”
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