Mitsubishi and BRI Invest to Investree in the Middle of Pandemic

Financial technology (fintech) startup, Investree, has just announced the first round of series C funding led by MUIP, an extension of the venture business from Mitsubishi UFJ Financial Group, Inc. (MUFG), and BRI Ventures, an extension of the venture business of PT Bank Rakyat Indonesia (Persero) Tbk (BRI).

Funding obtained amounted to US$ 23.5 million or around IDR 383 billion. The funds received in the midst of the Covid-19 pandemic are planned to be used to develop Investree services in order to support Small and Medium Enterprises (SMEs) in Indonesia.

Also to increase the growth of Investree’s activities in the Philippines and Thailand as part of the company’s regional expansion strategy.

“These two leading banks in Japan and Indonesia will support our commitment to fund the growth of SMEs in Indonesia, the Philippines, and Thailand, which currently face a credit gap of US $ 430 billion,” said Investree CEO & Co-Founder Adrian Gunadi through his statement, Wednesday (4/8/2020).

The Investment Strengthens the Cooperation Between Investree and the Two Banks

This investment, Adrian continued, will strengthen strategic cooperation between the two banks and Investree in order to expand the reach of Investree’s services to more SMEs.

“We believe that Indonesia and Southeast Asia have great potential in terms of fintech solutions to bridge the SME credit gap, and we are happy that MUFG and BRI can share this vision,” he explained.

He emphasized that this series C funding will also strengthen Investree’s commitment to support financial assistance for Indonesian SMEs, especially those affected by COVID-19.

“A solid financial platform and condition allow us to be able to overcome the current climate with confidence,” he concluded.

MUIP and BRI Comments on Investree

Nobutake Suzuki, President & CEO of MUIP, said Southeast Asia has significant potential in terms of SME financing, and the company sees Investree as having proven management strategies and expertise.

Making it one of the leading players in the fintech lending industry in Indonesia and Southeast Asia as it grows overseas.

“We also see that Investree has a high commitment in supporting the growth of SMEs, and Danamon (PT Bank Danamon Indonesia Tbk) as a member of MUFG also has a strong commitment to contribute to the Indonesian economy,” said Nobutake

While Nicko Widjaja, CEO of BRI Ventures, realized that the COVID-19 pandemic caused financial uncertainty for both SMEs in Indonesia and abroad. However, he is very confident that Investree can come with a stronger position.

“By joining this funding, BRI Ventures believes that the collaboration between the BRI group and Investree that has taken place since 2018 is able to make a significant contribution to economic growth in Indonesia,” added Nicko.

Strong Trust amid Covid-19 Pandemic

The support shown by MUFG and BRI is a form of strong trust in the strategy and the Investree management team in the midst of current uncertain conditions.

This investment aims to build and enhance a strategic partnership between MUFG, BRI, and Investree that enables this platform to reach more SMEs geographically and with stronger product offerings.

With new funding and support from leading institutional partners, Investree is in the right position to achieve its mission of creating financial inclusion for all SMEs in Southeast Asia.

Co-founder and CEO Investree Adrian Gunadi said the fresh funds would be used to expand and strengthen the domestic market. “Also to support Investree’s expansion plans to Thailand and the Philippines through a joint venture,” he said during a video conference on Wednesday (8/3).

At present, the company is processing licenses in the two countries. Corona pandemic is indeed hampering permit applications. In the Philippines for example, it is implementing a regional quarantine (lockdown). Even so, Investree is optimistic that it can explore the two countries in the second or third quarter of this year. “So, in 2020 we have full services in three Southeast Asian countries,” Adrian said.