Finfra, a startup based in Indonesia, has successfully raised $1 million in new funding. The funding round saw participation from notable investors including DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund.
The newly acquired funds will be utilized for product development and the expansion of Finfra’s engineering, data, and finance teams. Finfra originated from Danabijak, a profitable consumer financial services provider, and will continue operating as a subsidiary under Finfra.
While Finfra serves various industries, it specifically caters to digital supply chain platforms, tech companies, and merchant e-commerce platforms. One of its primary offerings is a loan management system that enables businesses to provide credit to their clients through their own platforms. The most commonly utilized services offered by Finfra include invoice financing and purchase financing solutions. Although its main focus is on serving B2B clients, Finfra can also be utilized for B2C applications.
Markus Prommik, co-founder and CEO of Finfra, describes the startup as a comprehensive solution for launching and scaling white-labeled credit services. He highlights the significant advantage provided by Finfra, explaining that without the startup, clients would need to invest millions of dollars in developing the required technology and infrastructure, as well as spend up to five years acquiring lending licenses and building a team. Instead, by leveraging Finfra’s APIs, clients can begin offering embedded finance within a matter of weeks.
A key value proposition of Finfra lies in its emphasis on customer experience control. It seamlessly integrates risk controls and data from clients’ platforms, enabling them to extend affordable credit while managing risk effectively. Additionally, Finfra offers portfolio analytics to assist customers in monitoring performance and essential lending key performance indicators (KPIs).
Prommik emphasized that Finfra stands out among other embedded finance platforms in the areas of payments, data, and infrastructure by deliberately excluding credit services, despite their high demand. Rather than viewing these platforms as competitors, Finfra sees them as potential allies.
Finfra believes that its growth will be strengthened by the Indonesian Financial Services Authority (OJK)’s commitment to achieving a 90% financial inclusion target by 2024, up from 75% in 2019. Despite the proliferation of online platforms in Indonesia, a significant number of individuals and small businesses still lack access to credit through traditional channels such as banks and financial institutions. As a result, they rely on alternative solutions, including embedded finance.
Patricia Sosrodjojo, a general partner at Seedstars International Ventures, stated, “We have witnessed similar initiatives succeed in emerging markets where MSMEs (Micro, Small, and Medium Enterprises) encounter substantial obstacles in obtaining capital. Finfra’s approach not only aligns with the national economic development objectives but is also strategically positioned to address the challenges of this rapidly expanding market.”
