Indonesia-based microlending marketplace Amartha Mikro Fintek received more than $18m on Wednesday in a funding round led by Line Ventures, messaging platform developer Line’s corporate venturing unit, according to Jakarta Post.
UOB Venture Management, the investment arm of financial services firm United Overseas Bank, also took part, as did private equity firm Bamboo Capital Partners, its Bamboo Financial Inclusion Fund II and unnamed new and existing investors.
Founded in 2010, Amartha began life as a microfinancing provider but has evolved into an algorithm-driven marketplace connecting third-party lenders to micro-entrepreneurs in remote parts of Indonesia.
The company’s algorithm automatically scores each loan application based on external data, and its clients attend weekly education sessions at its mini-retail branches, which cater to entrepreneurs inexperienced with formal financing contracts.
Principally marketed toward women in small villages, Amartha’s platform typically facilitates loans sized roughly between $210 and $710. It has accepted more than $106m in loan proposals to date.
The funding will be invested in enhancing Amartha’s core technology, improving its machine learning functionality as the company looks to enhance customer experience and encourage access for more female microentrepreneurs.
The company raised between $2m and $5m in an early 2017 series A round led by Mandiri Capital, the VC arm of financial services firm Bank Mindiri, which invested alongside diversified holding company Midplaza Holding and existing backers Lynx Asia Partners and Beenext.