Investree attracts US$10M from Swiss firm to fund Indonesian MSMEs making social, economic impact

Investree, a digital lending platform for MSMEs in Indonesia, has received US$10 million in funding from the Swiss asset manager responsAbility Investments.

Accial Capital, an impact-focused investor in Investree, also co-invested.

Jakarta-based Investree will use the funds to finance its borrowers’ (MSMEs) projects that have significant economic, social and environmental impacts on life, especially during the recovery period due to the pandemic.

This round followed a US$15 million investment into Investree by Accial in November 2020.

Also read: Border-crossing and financial inclusion: The story of fintech in ASEAN

Founded in 2016, Investree aims to use technology and data to make loans more affordable and accessible for MSMEs.

A Financial Services Authority of Indonesia (OJK)-licenced company, Investree specialises in supply chain finance, with a focus on client acquisition through an ecosystem of large and reputable payors.

One of the best cases of Investree is to distribute business loans for unbankable women in the Gramindo ecosystem. Gramindo is a savings and loan cooperative that focuses on super-micro financing in Indonesia.

Investree also has a presence in the Philippines.

According to the International Finance Corporation (IFC), SMEs lack easy and fast access to financial services to support business growth. IFC estimates that that 65 million firms, or 40 per cent of formal MSMEs in developing countries, have an unmet financing need of US$5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending.

The pandemic also adds to the mix, generating greater hurdles in eliminating poverty and creating jobs to absorb the growing workforce.

“The credit provided by the investment partnership is also timely because we, through our digital solutions, continue to support SMEs in the country to survive, recover, and grow stronger in going through the difficult times caused by the pandemic,” said Investree co-founder and CEO Adrian Gunadi.

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Investree

The post Investree attracts US$10M from Swiss firm to fund Indonesian MSMEs making social, economic impact appeared first on e27.

,Investree attracts US$10M from Swiss firm to fund Indonesian MSMEs making social, economic impact | e27
image

Leave a Reply