Komunal, a fintech company offering neo-rural bank services in Indonesia, has raised US$5.5 million in a Series A extension funding round led by Sumitomo Corporation Equity Asia.
Jafco Asia, Skystar Capital, Sovereign Capital, and Gobi Partners co-invested.
With the Series A+ funding, the startup aims to drive financial inclusion in Indonesia by digitalising rural banks. The company will also continue to expand its product offerings and develop partnerships with new rural banks, particularly those outside Java and Bali.
Launched in 2019, Komunal digitises rural banks by combining funding access and hyperlocal lending to support economic growth in Indonesia. It provides financial services to the underbanked population through its unique partnership with the rural banks in Indonesia.
The firm’s vision is to elevate rural banks and SMEs in the archipelago to serve their local community better.
It has so far partnered with 376 rural banks and channels productive loans to MSMEs predominantly based in tier 2 and 3 cities. Through its digital-based DepositoBPR offering, Indonesians can deposit funds in hundreds of rural banks, eliminating the conventional need for face-to-face processes. These deposits also offer higher interest rates than deposits offered by commercial banks.
In 2023, Komunal claims to have channelled US$600 million in combined loans and deposits — nearly tripling from the previous year. Through KomunalP2P, the company has disbursed US$250 million in loans to over 1,300 MSME projects throughout the country.
Also Read: P2P lending platform Komunal raises investment to improve the funding access to Indonesia’s MSMEs
Additionally, DepositoBPR has also channelled US$350 million in deposit funds to 376 rural banks across the nation.
In September 2021, Komunal received US$2.1 million in its Series A round of financing, led by East Ventures, with participation from Skystar Capital.
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