Oy! Confirms Series A Funding Worth 427 Billion Rupiah

Oy! officially announced the acquisition of series A funding of $30 million or the equivalent of 427 billion Rupiah led by SoftBank Ventures Asia.

There’s also the involvement of several other investors such as Pavilion Capital, MDI Ventures, AC Venture, Wavemaker, CCV, PT SAT, Orion Advisors, and Saison Capital Pte. Ltd.

Previously, we first reported about the acquisition of this funding in July 2021. At that time, the relevant parties were still reluctant to provide further comments.

It is planned that this funding will be used for business expansion and strengthening its financial service infrastructure in Indonesia. 

Several previous investors such as Temasek and Alternate Ventures also continued to contribute in assisting the company’s business operations.

Founded in 2018, Oy! positioning itself as a financial solution application. Not only free transfers, but they also complement the service with payment features that are connected to a debit card.

Currently O! Indonesia has collaborated with 80 banks and has obtained a license from Bank Indonesia for this transaction activity.

Founder & CEO Oy! Indonesia Jesayas Ferdinandus said, “We are currently enjoying tremendous growth with a total valuation of more than $100 million or equivalent to IDR 1.4 trillion, this puts Oy! Indonesia as a successful startup bears the title of the centaur.”

In an interview with local media at the Fintech Week event last June, Jesayas also shared information regarding the growth in transaction volume of Oy! which reaches 20-30% every month.

This has started since the first PSBB period until now as the purchasing power of the Indonesian people has recovered.

Preparing for Offline Service

While offline activities have started to return to normal, his party also said that they are preparing a sharing service that can be used by all fintech companies to reach consumers offline.

This innovation is said to be the result of collaboration with several banks and Bank Indonesia. This is suspected to be due to 70-80% of Oy! is a corporation that requires transaction infrastructure both online and offline.

Jesayas also mentioned that the growth that is being experienced must be supported by a commitment to realize the vision of Oy! Indonesia as the best and most complete payment system aggregator infrastructure provider in Indonesia.

Through continuous transformation and expansion, Oy! Indonesia plans to continue to strengthen its services as a payment system that facilitates all financial transactions.

These transactions cover individual daily needs to business needs between several institutions, such as commercial banks, digital banks, p2p lending, e-money, and other fintech companies.

Digital Payment System Solutions in Indonesia

Digital payment system solutions have proven to be the main pillars for business continuity during the Covid-19 pandemic. This is shown by the continued increase in transactions using electronic money in Indonesia, which reached IDR 24.8 trillion as of August 2021.

In addition, Bank Indonesia also recorded a digital banking transaction value of IDR 3,468.4 trillion or grew by 61.80%. The rapid development of digital is increasingly changing consumer habits in transacting. They are more rational about price.

Look for services that provide low prices, easy processes, including money transfer services between accounts. This has opened up great business opportunities for transfer service providers.

Regarding payment system solutions, SoftBank Ventures Asia Partner, Cindy Jin said, “We think that payment system solutions are not only a great market opportunity but can also increase financial inclusion in Indonesia.”

Therefore, Softbank Ventures Asia appreciates what Oy! Indonesia, namely building financial infrastructure in various payment methods both online and offline.

In this sector, fierce competition occurs between Oy! and Flip. While Flip and Oy! competing to provide more efficient solutions, several digital wallet services such as DANA, LinkAja, or OVO also provide transfer options without or with smaller admin fees.