Indonesian microfinance fintech company Amartha has secured a US$17.5 million equity funding from the Accion Digital Transformation Fund.
This investment from global nonprofit Accion aims to help Amartha expand its platform, offering a full range of financial products and services to underserved women-led small businesses in rural Indonesia using data and AI.
Amartha has built a robust digital financial infrastructure connecting microbusinesses in Tier 2 and 3 cities outside of Java Island.
Utilising an embedded lending and funding model for both institutional and retail investors, Amartha provides personalised financial solutions, payment services, and a proprietary credit scoring system.
To date, the company has disbursed over 25 trillion Indonesian rupiah (approximately US$1.6 billion) in working capital to more than 2.5 million women-led businesses across Java, Sumatra, Nusa Tenggara, Sulawesi, and Kalimantan.
The investment will also offer strategic support to enhance customer engagement, operational efficiency, and product innovation using digital technologies.
This fund focuses on aiding micro, small, and medium enterprises (MSMEs) in South and Southeast Asia, Latin America, and Africa.
Njord Andrewes, Managing Partner of Accion Transformation Capital and member of Amartha’s Board of Commissioners, said,
“Through its unique business model and marketplace platform, we believe Amartha is in a prime position to connect many women-led small businesses across Indonesia to responsible financial services for the first time.
We are partnering with Amartha to provide both strategic support and growth capital, as they work to reach new clients in underserved areas using digital technologies.”
Ramdhan Anggakaradibrata, Chief Financial Officer of Amartha said,
“The latest funding from Accion Digital Transformation Fund will help strengthen our ability to leverage the power of data and AI. We will not only meet the current needs of our customers but also anticipate future trends and challenges.
This approach will help us remain at the forefront of fintech innovation, continually evolving to provide cutting-edge financial solutions that empower our customers and drive sustainable growth.”
Featured image credit: Edited from Freepik
The article first appeared on Fintech News Singapore
