Photo Credits: Finantier
Finantier, a Southeast Asian Open Finance startup providing an API platform for financial institutions to access and analyze consumer financial data, has raised a 7-figure seed funding round led by Global Founders Capital (GFC) and East Ventures (EV).
The round was oversubscribed, and funds were presented at a post-money valuation of more than 20 times its pre-seed valuation in November 2020.
Future Shape, a venture capital firm founded by Tony Fadell, one of the inventors of the iPhone, participated in this round of funding. Several world-renowned fintech investors, such as Parttech Partners, Taurus Ventures, Saison Capital, and GMO Venture Partners, also participated. Finantier also welcomes Francesco Simoneschi, Co-Founder and CEO of Truelayer, as their advisory board to strengthen its advisory board.
Several existing investors, such as AC Ventures, Y Combinator, Genesis Ventures, Two Culture Capital, and leading angel investors, took part.
“We at AC Ventures are proud to be early investors with Finantier, especially in backing founders with an extraordinary mission to create an enormous impact on many individuals and the overall economy. This fundraising is a great milestone in the long journey of achieving inclusive finance in Indonesia and beyond,” Adrian Li, ACV’S Founder & Managing Partner said.
Finantier is part of the Winter 2021 Y Combinator batch. Since the start of the year, the company has expanded its team more than five times to 50 employees while growing its clients and partnerships by more than 50 percent month-on-month.
The fresh funds will be used to increase Finantier’s product offerings, continue its expansion in Indonesia and the region, and double the size of its team.
Democratizes Access To Financial Services
Photo Credits: Finantier
According to Bain, more than 70 percent of adults in Southeast Asia do not have access to financial services. At the same time, millions of small and medium enterprises (SMEs) in the region face significant funding gaps. This can be attributed to the high unbanked population and inadequate financial infrastructure in Southeast Asia.
Many Indonesian financial institutions lack access to consumer financial data, handicapping them to provide financial services such as payments, lending, and insurance. This is due to the high unbanked rate within Indonesia.
According to Bank Indonesia data in East Ventures Digital Competitiveness Index (EV-DCI) 2021, over half of the population or 90 million adults remain unbanked. This limits financial institutions’ ability to assess their banking data for product or service eligibility.
Founded in 2020, Finantier solves this problem by aggregating data from alternative data sources such as gig economy platforms and telcos. The company works with over 150 companies, giving clients access to a comprehensive range of datasets.
After user consent is obtained, these datasets are then analyzed to provide detailed insights on consumers for financial institutions, allowing them to offer financial services to the unbanked. This significantly reduces the number of people who lack access to essential financial services, accelerating financial inclusion within Indonesia, which the government has identified as a critical priority.
“Finantier democratizes access to financial services by allowing the millions of unbanked – from roadside warungs (SMEs) to gig economy workers – to benefit from their digital data footprint. By unlocking access to basic financial services for the unbanked, we are enabling them and their loved ones to lead better lives,” Diego Rojas, Co-founder and CEO of Finantier said.
Finantier is the only Open Finance firm within Southeast Asia, working closely with regulators and advising in Open Banking and Open Finance standards. Fintech veterans lead the company with decades of combined experience.
CEO Diego Rojas worked closely with the co-founders of NYSE-listed LendingClub and was the Technical Lead at the founding team of GIC-backed Dianrong. This Chinese online lending marketplace has raised more than US$550 million in funding. Diego was also a former CTO and Advisor for other fintech startups within Southeast Asia. COO Edwin Kusuma was formerly CEO of P2P lending firm 360Kredi and previously Director of Operations at Kredinesia. CPO Keng Low was a Silicon Valley software engineer and previously an Entrepreneur-in-Residence at East Ventures.
“Open Finance is an extension of Open Banking. Through Open Finance, non-banking financial data are now securely aggregated too. With Open Finance facilitating the open exchange of consumer data, companies can leverage it to reach more customers while creating more personalized financial services,” says Diego.
Pandu Sjahrir, Founding Partner of AC Ventures & Chairman of Indonesia FinTech Association (AFTECH) added, “in order to accelerate Financial Inclusion and increase innovation in Financial Services across Indonesia, collaboration is key among regulators, associations, and the private sector. The Finantier team is doing a great job by proactively engaging all the parties while building a Fintech platform and a sustainable ecosystem aligned with the vision of a more inclusive country.”