Jakarta, 9 April 2016 – Crowdo, one of the largest and fastest growing crowdfunding platforms in Southeast Asia, today officially launched to the public its peer to peer lending platform in Indonesia. This follows 6 months of Crowdo running a private version of the platform with a closed group of participants.
“Small and Medium Enterprises (SMEs) play a strategic role in the development of Indonesia’s economy. They contribute close to 60 percent of the GDP and employ more than 97 percent of Indonesia’s workforce. Peer to peer lending is today widely recognized as a powerful enabler that will help both Startups and SMEs to grow and further develop their businesses. At the same time, it is viewed as revolutionary, allowing for the first time, businesses to leverage the full power of community-driven online platforms to efficiently raise capital. Business owners are empowered to raise capital through a cost-effective new platform and investors have transparent access to new investment opportunities,” said Leo Shimada, Co-Founder and Chief Executive Officer of Crowdo.Peer to peer lending has generated strong interest in Indonesia, with Crowdo receiving overwhelming interest from business owners and investors in the past six months. “In Indonesia, entrepreneurs appreciate the benefits of peer to peer lending, while investors find this platform a transparent and efficient way of diversifying their investment portfolio and to support local SMEs. Peer to peer lending also offers cross-border investment opportunities on a single platform. International investors from all over the world are welcome to invest on our platform,” Shimada noted.”
Peer to peer lending offers a novel investment exposure previously only available to banks. Therefore, it can add value to any individual’s existing investment portfolio. Crowdo has enabled me to get exposure to the Indonesian market, which I expect to show healthy growth going forward” commented Crowdo’s Investor member Wouter Kneepkens who is a European Fund Manager based in Singapore.The potential of peer to peer lending in Indonesia is massive and the numbers speak for themselves.
Below are some performance highlights since the beginning of this year:
Pipeline = 10,000+ loans in the pipeline
Turnover = 100+ new loans published every 2 weeks
Minimum investment size per Investor= as small as Rp 500,000
SME Loan Application Size = up to Rp 1,000,000,000
International Investor base = 40% foreign investors
International investment = 60% invested capital comes from foreign investors
“We see Indonesia as our flagship market for peer to peer lending. We are very focused on building a sustainable and thriving peer to peer lending platform and ecosystem in the country. The launch is especially timely because Crowdo already has specialized expertise in Southeast Asia and a proven track record with several hundred projects funded in this region.” he commented.
Crowdo is best positioned to offer the strongest combination of market access, quality investment flow, and financial expertise to both SMEs and investors. Crowdo has a holistic view of both sides of the marketplace, and it is also led by a team of fintech experts with investment and banking backgrounds. Meanwhile, Crowdo is enhancing its proprietary credit scoring technology while using high quality assets to collateralize the loans to mitigate investment risks for investors.
Crowdo has one of the fastest growing communities in Southeast Asia, currently with close to 20,000 members and growing by double digits quarterly. These members are genuine prospective investors such as institutional investors, investment firms and individuals that are looking to expand their investment options.
Crowdo’s extensive expertise in entrepreneurship and early stage investments extends beyond Southeast Asia, having helped projects across six continents raise funding from more than 70 countries.
Crowdo’s peer to peer lending platform launch in Indonesia comes at an opportune time – global numbers are telling about the huge potential of this space. According to the World Bank, the
total combined market potential for crowdfunding globally outside the United States could reach as high as $95.67 billion by 2025. From this figure, China leads the estimates with up to $50.06 billion potentially invested, while across the Asia Pacific region, which comprises China, East Asia and the Pacific, and South Asia, the funding potential is valued at up to $62.91 billion. In comparison according to the International Finance Corporation – World Bank Group, in
Indonesia there are almost 20 million SMEs with limited access to credit, with an estimate credit gap of $27 billion. This indicates the vast potential size of peer to peer lending in the developing world. With up to $62.91 billion in crowdfunding funding potential in the Asia Pacific region.
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