Bali-based Fintech Djoin Secures Seed Funding from 500 Global to Digitize Microfinance Institutions and Boost Loans Access For The Underbanked
Bali, 6 August 2024 – Djoin’s loan platform for microfinance institutions (MFIs) raised seed funding from multi-stage venture capital firm 500 Global. The strategic investment will enable Djoin to accelerate its go-to-market strategy, scale its team to support growing demand, expand its loan platform capabilities, and reach new regions across Indonesia.
“Most people know Bali for its tourism; the collapse of the industry during our COVID-19 pandemic propelled a new generation of local technopreneurs and the emergence of a vibrant innovation ecosystem,” shares Indra Adhi Suputra, CEO and co-founder of Djoin. “By empowering microfinance institutions with homegrown technology that enhances their financial sophistication, we are building stronger and more resilient communities in Indonesia.”
Over 50% of Indonesians are underbanked or unbanked, heavily relying on microfinance institutions, especially credit unions (Koperasi Simpan Pinjam) for financial services. Unlike conventional banks that serve customers in major cities, credit unions reach rural and remote areas serving half of the nation’s population.
Djoin provides a comprehensive end-to-end banking platform to meet the needs of the underbanked and unbanked. Their financial services include (i) banking SaaS to help MFIs and their members deposit, withdraw, receive, send, and monitor transactions, (ii) a credit decisioning engine to enhance MFIs’ credit underwriting processes, and (iii) a loan-channeling product to bridge lenders, MFIs, and members.
Djoin’s data-driven interface significantly improves operational efficiency, optimizes loans management, reduces non-performing loans, and promotes financial stability for microfinance institutions. The innovative solutions empower microfinance institutions to operate more proficiently and seamlessly, allowing them to eventually offer financing to underbanked communities at lower interest rates. This approach helps close the USD 140 billion funding gap, fostering sustainable and inclusive economic growth for the nation.
Khailee Ng, Managing Partner at 500 Global adds: “To include all of Indonesia in the country’s growing economy, we need to use technology. Credit unions have served many unbanked communities, using Djoin to help them scale could enable so much more for the nation!”
Djoin facilitated over Rp700 billion (~USD35 million) in loan disbursements in 2023. The team onboarded over 80 microfinance institution clients across Bali, East Java, and East Nusa Tenggara, and played a pivotal role in reducing their average non-performing loans (NPL) by 52% from 2022 to 2023.
Djoin is led by I Wayan Indra Adhi Suputra, Farzikha Soerono, and I Putu Takumi Wijaya. The co-founders bring over 30 years of combined experience across credit union, finance and technology industries. United by a vision of financial inclusivity, their mission aligns with Mohamad Hatta’s vision of cooperatives as the cornerstone of Indonesia’s Pancasila-based economy. Embracing gotong royong and Pancasila, Djoin’s commitment is captured in their mission: “Pinjaman Berkualitas, Koperasi Naik Kelas” (Improved Loan Quality, Elevating Cooperatives).
