KoinWorks: Financing Indonesia’s Underserved MSMEs

Eunike Adelia founder of the Jakarta-based coffee shop chain Kopitagram. KoinWorks funding helped Eunike open new Kopitagram branches in more locations around Jakarta and other cities.
ADI provided first loss equity to Lendable in 2021, which was critical to attracting private institutional investors into the fund. Lendable used its capital to invest in KoinWorks.
KoinWorks, a portfolio company of Lendable, was founded in 2016 to help the micro, small, and medium enterprises (MSMEs) in Indonesia secure capital. According to KPMG [1] Indonesia lags in terms of financial inclusion, with about 79% of its 56 million MSMEs lacking access to any formal financial services. KoinWorks initially launched a peer-to-peer (P2P) online platform to bridge the gap between borrowers (MSMEs) and retail lenders. Today, KoinWorks has 1.6 million individual investors, with one in every four being a female investor.
KoinWorks’ platform continues to evolve- now offering 10 financial solutions and two business tools accessible at a single click. MSMEs can secure working capital, establish online bank accounts, leverage their invoices, and provide early-wage access. KoinWorks has demonstrated that technology plays a pivotal role in enhancing the quality, accessibility, and affordability of financial services for the underserved population in Indonesia. By the end of 2023, KoinWorks had disbursed $1.8 billion to MSMEs to address their liquidity constraints of over 900,000 MSMEs. Of these businesses, 36% that are women-led and over 50% accessed funding for the first time. This funding had a significant multiplier effect, enabling MSMEs to expand their operations and resulting in the creation of 95,000 new jobs within the year.
KoinWorks has not only provided capital but also enhanced the financial knowledge of its users through its “Koin Learn” feature, which offers short-format video lessons accessible via the app. In 2023, it has organised over 500 business and financial literacy sessions, helping upskill 130,000 MSMEs and individual investors.