Through innovation, KoinWorks has enabled thousands of small and medium-sized enterprises (SMEs) to access credit and grow their business, positively impacting not only the SMEs but the economy at large.

Serving the unmet needs of SMEs

KoinWorks connects borrowers (SMEs) to lenders on its online platform to provide access to credit to the underserved SME market. Established in 2016 by Benedicty Haryono and Willy Arifin, the company specialises in SME loans, and has over 225,000 retail lenders and more than 4,000 borrowers active on its platform. KoinWorks thereby provides small savers (i.e retail individuals) with wealth management solutions and an opportunity to channelise and diversify their investments towards the underserved SMEs which form the backbone of the Indonesian economy.

Senior Investment Officer Sagar Thakar: “Indonesia is lagging behind in terms of financial inclusion.  Over two-thirds of the 56 million micro, small, and medium-sized businesses in Indonesia have no access to any type of formal financial service. This leaves a sizeable market for a company like KoinWorks to address. The company shows that technology is key in improving quality, access and affordability of financial services for the millions who are not well served.”

Tech and touch

KoinWorks’ loan application process is simple and straightforward, with a balanced ‘tech and touch’ approach by using a mix of borrowers’ data and third-party data, and physical visits to the borrowers’ premises.  Currently, the company’s operations are focused on Java and Sumatra, the major economic hubs of Indonesia, but expansion to other regions is part of its strategy for the coming years.

The value of good education

P2P lending is relatively new in Indonesia. KoinWorks will work towards further scaling up the platform over the next 2-3 years and also want to continue, and further develop, financial literacy training and awareness regarding P2P lending, for example via podcasts and events. Topics include marketing, running your business, financial education and the risks associated with lending. 

The founders of KoinWorks see good education as essential in empowering the Indonesian youth and advancing the country. Therefore, KoinWorks offers a special education loan product through the platform (KoinPintar), designed to make education financing affordable. The company established several partnerships with online schools to further strengthen the value proposition for this product.   

Currently, KoinWorks’ operations are focused on Java and Sumatra regions given that the major economic hubs of Indonesia, but it will expand to other regions as well in the near future.