Indonesian fintech company Amartha has secured US$55 million in funding from three European development finance institutions, namely Swedfund, Finnfund and BIO.

The funds will be used to expand financial access for women-led microenterprises in rural areas through increased access to financing.

Swedfund contributed US$25 million, while Finnfund and BIO each provided US$15 million.

The investment forms part of a larger syndicated loan of up to US$199 million led by the International Finance Corporation (IFC), a member of the World Bank Group.

Founded in 2010, Amartha provides digital financial services to ultra-micro businesses across Indonesia.

The company has reached more than 3.3 million borrowers to date, with 99 percent of them being women entrepreneurs.

Amartha said the funding will help strengthen its lending activities and expand the reach of its digital platforms, including AmarthaFin, a recently launched app that allows borrowers to act as micro-lenders to other group loan recipients.

The app also provides an opportunity for borrowers to generate additional income.

“The funding comes as a strong vote of confidence in Amartha’s grassroots-focused model and proven operational excellence, especially at a time when startup investment across Southeast Asia has slowed,”

said Ramdhan Anggakaradibrata, CFO of Amartha.

“This collaboration with three European state-owned development finance institutions highlights foreign investors’ recognition of both the tremendous potential of the grassroots segment and Amartha’s strong capability and governance in serving it.

Amartha is committed to channeling this funding to reach millions of grassroots women entrepreneurs across Indonesia,”

said Andi Taufan Garuda Putra, Founder & CEO of Amartha.

Featured image: Edited by Fintech News Singapore/Malaysia, based on image by ilygraphic via Freepik