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Amartha bags US$50M debt financing to provide working capital to female entrepreneurs in rural Indonesia

Amartha

Amartha, an Indonesian P2P lending platform focused on women micro-entrepreneurs, announced today it has secured a US$50 million debt financing from US-based Lendable.

Founded in 2010, Amartha provides access to women micro-entrepreneurs in rural areas seeking working capital and connects them with lenders. The company claims it has channelled funding of IDR 3.13 trillion (US$222,000) to over 600,000 women micro-entrepreneurs in Java, Sumatra and Sulawesi.

Andi Taufan Garuda Putra, founder and CEO of Amartha, said that women are key drivers of a micro-economy that will play a pivotal role in the economic recovery of Indonesia. By providing access to capital and entrepreneurship education for women, Amartha can help business owners increase their annual income by up to seven times.

“We are grateful for the trust given by Lendable so that women can increase their role in the Indonesian economy, especially in the context of post-pandemic recovery. Indonesian micro-businesses have displayed strong resilience during the pandemic and are promising prospects going forward,” he added.

Also Read: Patamar Capital launches US$50M Beacon Fund for female entrepreneurs in SEA’s emerging markets

More than 22 million women micro-entrepreneurs lack access to banking and financial institutions in Indonesia. By adopting its technology with a nationwide push for digital adoption, Amartha claims it is able to reach the unbanked and underserved segment of women in rural areas

“Gender lens investing is a critical development goal in the emerging and frontier markets. We have been impressed with the energy and dedication that the Amartha team have poured into promoting financial inclusion for female micro-entrepreneurs in rural Indonesia,” said Hani Ibrahim, Chief Investment Officer of Lendable.

“Amartha’s objectives very much align with Lendable’s commitment and our aim of supporting the unbanked and underbanked segments of society by providing debt to fintechs that deliver crucial services,” he shared.

Image Credit: Amartha

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