Mastercard-backed Indonesian fintech startup Digiasia Bios is raising up to US$20 million in debt funding to provide lending support to local warungs (mom-pop stores) in Indonesia. This update was first reported by Dealstreet Asia.
Aside from that, the startup intends to offer a minority stake to partners as part of its equity fundraising plan as part of their effort to offer “something that can add value,” according to co-founder Alexandra Rusli.
Digiasia Bios was founded in 2017, as a payments technology platform that is geared towards bringing financial inclusion in the country.
The company has already developed a large number of partnerships that will help reach its goal of providing digitisation into the daily lives of Indonesians.
Some of its partners include remittance companies such as Western Union and Mandiri Syariah and large vendors such as iRMA and Metrodata.
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It is also currently affiliated with several fintech companies in Indonesia including KasPro, an e-wallet and payment platform; KreditPro, P2P lending and financing platform for small and medium-sized businesses; and RemitPro.
Recently, Digiasia raised an undisclosed round of Series B funding from Mastercard. In addition to providing capital, Mastercard is providing the startup with strategic assistance to strengthen its suite of financial services.
At the end of 2019, the Financial Services Authority revealed that the financial inclusion index had hit 76.19 per cent, passing the government’s target of 75 per cent for the year.
There has been a particular emphasis on the capacity of fintech to drive additional inclusion and economic opportunity. According to McKinsey, the digitalisation of commerce in Indonesia could help to add an additional US$150 billion to the country’s GDP by 2025.
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