Indonesian proptech startup Tanaku raises US$5.5M pre-seed capital

Indonesia-based proptech startup Tanakuhas secured US$5.5 million in a pre-seed funding round led by East Ventures. 

The round included equity and debt capital from an international bank. 

The fresh capital will be used to build the product, expand the team, acquire homes, and execute the go-to-market strategy.

Tanaku was founded by Jonathan Ma (CEO), Andries De Vos (Head of Product), Bhanu Prakash (Head of Marketing) and Alwin Hajaning (Head of Commercial).

Headquartered in Jakarta, Tanaku aims to build a ‘pre-mortgage solution’ for owning a home. It builds an end-to-end technology platform to facilitate the purchase and transaction of homes entirely online.

Also Read: Indonesian proptech startup Jendela360 secures US$1M led by Beenext

Prospective home buyers can get pre-qualified with Tanaku at much simpler terms than a traditional bank, pay just 2 per cent of the down payment (DP) for their home and move in immediately. 

They can then focus on building their remaining DP with monthly instalments and decide to either upgrade their house with Tanaku.

In the initial rollout, prospective home buyers can select the home from Tanaku’s curated list of properties. In the future, it will facilitate the purchase of any homes in the open market with partner agents across multiple cities in Indonesia.

Since 2000, homeownership has declined in Indonesia by 2 per cent each year, and 70 million millennials are the most impacted segment, with 70 per cent unable to afford their own home.

The problem stems from how the home needs to be purchased. Many millennials do not have large funds saved for the initial down payment, and banks reject the majority when applying for a mortgage. 

Property developers often offer instalment plans called ‘cicilan’, but they come with expensive hidden fees, high-interest rates and predatory terms. This leaves millennials frustrated and resorting to long-term rentals, causing a steady decline in home ownership.

—

The post Indonesian proptech startup Tanaku raises US$5.5M pre-seed capital appeared first on e27.