Financial Inclusion | January 18, 2023

Komunal raises $8.5 million to digitalize financial services in rural Indonesia

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, January 18 — Surabaya-based fintech startup Komunal has raised $8.5 million from investors including East Ventures Growth Fund, AlphaTrio Sustainable Technology Fund, Skystar Capital, Sovereign’s Capital, Ozara and Gobi Partners. Komunal launched in 2019 with a two-fold mission: digitalize Indonesia’s rural banking ecosystem and expand access to financing for the country’s micro, small and medium enterprises.

Most of Indonesia’s “inclusive fintech” startups are in Jakarta, the country’s capital, and are missing out on customers in tier 2 and 3 cities with low digital and financial literacy rates. Komunal has partnered with more than 220 banks to allow customers to make deposits and apply for loans online. Komunal’s peer-to-peer lending platform helps those banks offer loans to small enterprises. 

Financial inclusion

Last year, Komunal said it facilitated $230 million in deposits and loans between the banks in its network and their rural customers. In 2023, the startup is looking to expand its customer base and facilitate more than $500 million in banking transactions. “We are optimistic that the collaboration between fintech and incumbent banks, including rural banks, will create a very strong synergy,” said Komunal’s Hendry Lieviant.