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Finfra, an Indonesian startup that specializes in providing tech infrastructure for online businesses that want to offer embedded finance products, has recently raised $1 million in a funding round. The funding round included participation from DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund.
The startup plans on utilizing the new funding for product development and expanding teams in engineering, data, and finance. Finfra is an industry-agnostic tool that focuses on digital supply chain platforms, agritech companies, and merchant e-commerce platforms. By providing a loan management system, businesses can now offer credit to clients through their platforms. The most common way Finfra is used is by businesses who want to add invoice financing or purchase financing solutions. Finfra primarily serves B2B, but can also be used for B2C applications.
CEO Markus Prommik describes Finfra as a “one-stop shop to launch and scale white-labelled credit services,” explaining that without the startup, clients would need to spend millions of dollars to develop the necessary technology and infrastructure. They would also need to spend up to five years acquiring lending licenses and building a team. Finfra’s APIs now make it possible for businesses to start offering embedded finance within weeks.
One of Finfra’s key value propositions is control over customer experience. The platform integrates risk controls and data from clients’ platforms so they can extend affordable credit without taking on too much risk. Finfra also equips customers with portfolio analytics to monitor performance and key lending KPIs.
Additionally, Prommik has stated that Finfra’s differentiator from other embedded finance platforms in payments, data, and infrastructure is that they do not offer credit. Instead of seeing them as competitors, Finfra views those platforms as potential allies.
Finfra has grown out of consumer financial services provider Danabijak which is profitable and will continue operating as a subsidiary of Finfra. The startup believes the Indonesian Financial Services Authority (OJK) will bolster its growth to reach financial inclusion targets of 90% by 2024, up from 75% in 2019. Despite growth in online platforms in Indonesia, many people and small businesses still lack access to credit through traditional means, like banks and other financial institutions. Instead, they rely on alternative payment options, including embedded finance.
Section One: Introduction
Indonesian-based startup Finfra has raised $1 million in funding to boost its tech infrastructure and facilitate online businesses that offer embedded finance products. The funding round included participation from DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund. Finfra specializes in providing loan management systems, which allow online businesses to offer credit to their clients through their platforms. With Finfra’s APIs, businesses can launch embedded finance solutions in just a few weeks.
Section Two: What is Finfra?
Finfra is an industry-agnostic tool that focuses on digital supply chain platforms, agritech companies, and merchant e-commerce platforms. By offering loan management systems, businesses can now offer credit to clients through their platforms. The most common use of Finfra is by businesses that want to add invoice financing or purchase financing solutions. In addition, Finfra can serve both B2B and B2C applications.
Section Three: Key Features of Finfra
One of Finfra’s key value propositions is control over customer experience. The platform integrates risk controls and data from clients’ platforms so they can extend affordable credit without taking on too much risk. Finfra also equips customers with portfolio analytics to monitor performance and key lending KPIs.
Section Four: Finfra’s Competitive Advantage
According to CEO Markus Prommik, Finfra is different from other embedded finance platforms in payments, data, and infrastructure due to the fact that they don’t offer credit. Instead of viewing other platforms as competitors, Finfra sees them as potential allies.
Section Five: Impact on Financial Inclusion
The Indonesian Financial Services Authority has set a financial inclusion target of 90% by 2024, up from 75% in 2019. Finfra’s growth can be attributed to the fact that many people and small businesses still lack access to credit through traditional means, such as banks and other financial institutions. Instead, they turn to alternative payment options, including embedded finance.
Conclusion
Finfra offers a one-stop-shop for businesses and provides the tech necessary to scale white-labelled credit services. By leveraging Finfra’s APIs, businesses can launch embedded finance solutions within a matter of weeks. Finfra’s main focus is on digital supply chain platforms, agritech companies, and merchant e-commerce platforms.
FAQs
What is Finfra?
Finfra is an Indonesian startup that provides the tech infrastructure necessary for online businesses to offer embedded finance products.
What is the purpose of the recent funding round?
The $1 million funding round will be used for product development and expanding teams in engineering, data, and finance.
What industries does Finfra serve?
Finfra serves an array of industries, particularly digital supply chain platforms, agritech companies, and merchant e-commerce platforms.
What makes Finfra different from other embedded finance platforms?
According to CEO Markus Prommik, Finfra is different from other embedded finance platforms in payments, data, and infrastructure due to the fact that they don’t offer credit. Rather than viewing other platforms as competitors, Finfra sees them as potential allies.
How does Finfra impact financial inclusion?
Finfra believes it can boost financial inclusion by providing access to credit through its embedded finance solutions. The startup believes the Indonesian Financial Services Authority’s target of 90% financial inclusion by 2024, up from 75% in 2019, will help bolster its growth.
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