Indonesia-based integrated e-wallet service, LinkAja has raised up to US$ 100M in a Series B round held in November 2020, led by Grab. Other participants in the funding round include Telkomsel, BRI Ventures and Mandiri Capital Indonesia.
Founded in 2019, LinkAja provides e-payment services to the middle-class section and to micro, small, and medium enterprises (MSMEs) in Indonesia. It was created by a merger of Telkomsel, an e-wallet firm, and lenders Bank Mandiri, BRI and BNI. With LinkAja, users can easily buy credit, pay merchants, pay bills, send donations, send money to pay insurance and apply for loans. Presently, it caters to more than 58 million registered users, with almost 80% of them hailing from Indonesia’s Tier 2 and Tier 3 cities. The fintech app claims it witnessed its gross transaction value and transaction figures increase by three times in Q3 2020 as compared to the same period last year (2019).
The strategic alliance between Linkaja and Grab imply an effective collaboration in terms of ecosystem access and technology as LinkAja is founded by Indonesian state-owned enterprises, Grab will now have access to the country’s train and highway toll payments, utility bills, and social welfare distribution, among others, while LinkAja will benefit from Grab’s influence and technological proficiency.
Neneng Goenadi, managing director of Grab Indonesia said cash is still king in Indonesia, and there are millions of Indonesians who remain oblivious to modern financing systems. He further added that the strategic partnership between LinkAja and Grab’s ecosystem, which includes partners like OVO and Tokopedia, will enable them to bring cashless services to all Indonesians in a way that is reliable, convenient, and accessible.
Grab Holdings Inc., also known as Grab, is a Singapore-based multinational ride-hailing company. Apart from transportation, the company offers food delivery and online payment services through a mobile app. Presently, it operates in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines, Thailand, Vietnam and Japan. It is recognized as Southeast Asia’s first “decacorn” (a startup with a valuation of over US$ 10B).
Furthermore, Grab also recently launched its Tech Center in Indonesia, which will oblige as its regional innovation hub to create technology solutions for MSMEs in Southeast Asia. The Tech Center will focus on researching, designing, and testing tools and technology for the Indonesian MSME market first, which will then be distributed to other emerging markets in Southeast Asia. It is also looking forward to investing in homegrown tech talent development.
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