Investree Raises $10 Million, Targets Financial Inclusion in Indonesia

Investree, an online lender based in Indonesia, has raised $10 million that will be utilized to provide services to SMEs.

The funding came from responsAbility Investments, an asset manager from Switzerland that focuses exclusively on sustainable investment.

Additionally, Accial Capital, a tech-enabled investor in fintech lending portfolios in emerging markets has partnered with Investree’s institutional Lender.

The funds will be used to enable the financing needs of SMEs within Investree’s ecosystem. The move is described as contributing to the United Nations’ Sustainable Development Goals (SDGs), characterized by limited access to finance for Small and Mid-size Enterprises, that hinder job creation, and stymies economic development.

Adrian Gunadi, co-founder & CEO of Investree, commented:

“This is a very big stepping stone for Investree, wherein their third funding round, Accial Capital invites one of its Co-Investors, namely responsAbility to participate in funding through our platform. In line with responsAbility’s vision and mission as a sustainable investment house that specialises in impact, we will aim to use the funding from the responsAbility-Accial Capital partnership to finance our Borrower’s projects that have significant economic, social and environmental impacts on life, especially in the midst of recovery period due to the current pandemic. One of the things that are still one of our best cases, is to help empower women/mothers of ultramicro traders who are in the Gramindo ecosystem. These traders have group characteristics, consisting of women without access to banks (unbankable), and run their businesses using conventional and sharia schemes. As of now, their number has reached 5,700 on Investree’s platform.”

Investree states that the International Finance Corporation estimates that the Asian SME-MSME sector has a financing gap of around USD $2 trillion.  This is what underlies responsAbility in providing funds to Investree and to fulfill its mission of “using technology and data to make loans more affordable and accessible”, Investree said it will disburse the funds in a social impact business model in order to address the credit gap in Indonesia’s dynamic SME segment.

Jaskirat S. Chadha, Deputy Head, Financial Inclusion Debt of responsAbility, said they are excited to partner in this innovative structure that provides much-needed working capital funding to MSME borrowers in Indonesia.

“Fintech is a key driver for financial inclusion, notably in the MSME space, and we are happy that we found the right partners in Accial Capital and Investree with the needed expertise.”

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