Finfra announces partnership with Tyme Group following US$2.5 mil funding round

• This funding round brings Finfra’s total raised to US$4.3 million
• The round, led by Cento Ventures, included Accion Venture Lab & others

Finfra, the leading Indonesian lending infrastructure provider, has announced a partnership with Tyme Group, the multi-country digital banking group behind TymeBank in South Africa and GoTyme Bank in the Philippines. In a statement, the company noted that this partnership will support Tyme Group’s expansion into Indonesia as part of its broader Southeast Asia growth strategy, following its launches in the Philippines and Vietnam.

This announcement follows Finfra’s recent $2.5 million (RM11 million) funding round, led by Cento Ventures, with participation from Accion Venture Lab, Z Venture Capital, Matiss Ansviesulis, founder of Avafin, and existing investors.

Indonesia, the largest economy in Southeast Asia, has a vibrant SME sector that is rapidly digitising. By the end of the year, 24 million micro, small, and medium-sized enterprises are expected to be online or using digital services out of the country’s total 64 million. The government aims to accelerate this transformation, targeting 30 million digitised businesses by 2025. As this digital shift intensifies, so does the demand for accessible credit.

One of the most effective ways to meet this demand is through embedded lending, where digital platforms integrate credit products directly into customer transactions. This model has proven successful in various markets, and with the resurgence of alternative lending, embedded lending offers a more sustainable, scalable, and less risky solution than traditional methods.

Building on this momentum, Finfra’s platform enables non-financial platforms to easily integrate lending, creating new revenue streams and better serving their user base. Its comprehensive, API-driven infrastructure offers a full loan management system, scoring, portfolio analytics, and access to debt capital, while ensuring regulatory compliance through its licensed affiliate. International lenders like Tyme can leverage Finfra’s platform to scale embedded lending solutions, such as merchant cash advances, in Indonesia. By doing so, they can not only meet the growing credit needs of underserved businesses but also foster broader financial access in the country.

Markus Prommik, CEO and co-founder of Finfra, said: “Partnering with Tyme Group is a key milestone that validates our thesis and allows us to work with almost any digital platform that wants to embed lending. As more businesses integrate lending services, our platform’s ability to connect both sides is transformative.”

“This collaboration, supported by our investors, puts us on the path to profitability and strengthens our mission to drive financial inclusion and expand sustainable financing options in Indonesia,” he added.

Meanwhile, Coen Jonker, executive chairman at Tyme Group, said: “Southeast Asia is central to Tyme Group’s growth strategy, and Indonesia has long been a goal for our group. Partnering with Finfra allows us to tap into Indonesia’s SME segment by leveraging their robust embedded lending infrastructure and network within digital platforms.”

He added that this collaboration not only accelerates the firm’s mission to drive financial access but also enables it to offer innovative lending solutions to a broader audience of businesses and consumers in the region at unprecedented speed.

According to Finfra, it has enhanced its platform with significant upgrades, including an advanced API suite for seamless client onboarding, management, and servicing. The platform allows Finfra’s clients to make better credit decisions with tools like in-house credit reports, a partner portal, and portfolio analytics to support responsible loan book growth. To further drive platform development, the company recently appointed Hadi Tanzil, former co-founder of EmpatKali and Xendit alumnus, as chief technology officer.

Boon Ping Chua, partner at Cento Ventures, said, “Finfra’s embedded lending model is perfectly timed for Indonesia’s digital economy, which has produced hundreds, if not thousands, of industry-specific platforms in a position to identify high-value lending opportunities. Launching nuanced embedded credit products on these platforms, however, requires compliant and efficient infrastructure. The Finfra team has the right vision and execution precision to deliver this infrastructure and connect local non-financial platforms to cutting-edge global players like Tyme Bank.”

Rahil Rangwala, managing partner at Accion Venture Lab, said: “Across all the markets we invest in, we consistently see SMEs and consumers on digital platforms with an unmet need for credit. By building the lending backbone for digital platforms in sectors like e-commerce, agritech, and logistics, Finfra enables platforms to offer more accessible and sustainable credit solutions to their users. With lower servicing costs and stronger governance, lenders can design new products to profitably and responsibly serve customers currently excluded from the financial system.”

With this funding round, Finfra has raised a total of US$4.3 million (RM18.7 million) to date. The company claims that since its last fundraise, it has doubled its client base and expects to more than double its quarterly gross profit in Q4 2024 compared to Q4 2023.

It added that to date, it has facilitated over US$65 million (RM284 million) in credit to underserved Indonesian businesses and business owners. Preparing for its next stage of growth, it will leverage the new funds to expand onboarding capabilities for its growing customer pipeline, which includes Indonesia's technology scale-ups GoCement and Mekari, and is targeting profitability. Additionally, Finfra plans to enhance its data analytics, scoring, and risk assessment products.