Julo, a peer-to-peer lending startup has raised an undisclosed seed round of funding from East Ventures, Skystar Capital and Convergence Ventures. The company plans to primarily spent on product development, machine learning investments, team development, and distribution.
Commenting on the investment, East Ventures co-founder and Managing Partner Willson Cuaca said, “The way Julo assesses consumer credit worthiness is pretty unique. The founding team has prior experience of this vertical in other markets. We believe that will accelerate product customisation for the Indonesian market.”
Founded by Adrianus Hitijahubessy, Hans Sebastian, and Victor Darmadi, Julo is a digital platform with a focus on financial inclusion that offers unsecured personal loans to borrowers in partnership with institutional lenders.
Co-founder Adrianus is a seasoned financial technologist with global experiences in risk management, data analytics, and applied Artificial Intelligence (AI) in various industries including finance, consumer credit, and e-commerce. According to him, the idea of starting Julo occurred when he was building an AI-driven credit scoring solution in emerging countries in his prior company. He realised that instead of helping consumers in Latin America and African countries, I should be helping people in my home country.
Adrianus Hitijahubessy, co-founder further said to the Digital News Asia, “Indonesia is the perfect seedbed for the right-minded fintech lending company to flourish. The country has a large segment of the population at the base of the financial pyramid and low consumer credit liquidity, catalysed by rapid technological and infrastructural transformation in the past few years.”
Julo wants to reach out to 10,000 borrowers within a year to accelerate its credit scoring engine’s development. And to achieve those number, digital advertising and referrals will play a crucial part to the company.
In Indonesia, Julo competes with Taralite, a startup that offers personal loans for education, marriage, childbirth, etc. at a low-interest rate of around 1% and has secured $6.3 Mn from Japanese financial services provider SBI Group in May this year. Another peer-to-peer lending platform, Inestree has also raised an undisclosed amount in a Series A funding round led by Kejora Ventures last year in June.