Indonesian P2P lender JULO secures US$80m in a mix of equity and debt funding

INDONESIAN peer-to-peer (P2P) lender, JULO, has secured US$80 million of funding for its lending and "buy now, pay later" businesses.

This funding is a mix of equity and debt, with US$30 million in equity and US$50 million in debt funded by Credit Saison.

"Credit innovation requires a deep understanding of local consumer behaviours and needs in order to truly improve the financial health of all. JULO has emerged from the past few years as a resilient and Covid-proven business with more than US$300 million disbursements under its belt to date," said Kosuke Mori, head of global business, Credit Saison.

The P2P lender claims that it has a positive yield in its portfolio in 2020, and a 3 times year-on-year jump in funds disbursed in 2021. JULO says its loan book is on track to grow over 5 times in the next 12 months.

The US$30 million equity round will be used to grow JULO's analytics, product development, marketing and customer acquisition plans through hiring across teams. The remaining US$50 million debt will be used to finance loans on its platform.

"JULO is already being used by Indonesians throughout their financial lives - 72 per cent of loans are used for improvement purposes such as business capital, home renovation and education. By joining hands with Credit Saison, we have a fresh opportunity to take this significantly further by re-envisioning what the future of traditional lending should look like to truly uplift the region's most underserved," said Adrianus Hitijahubessy, chief executive officer and co-founder, JULO.

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