Finantier, a Singapore-based open finance startup, has raised 7-figure seed capital in a new funding round led by Global Founders Capital (GFC) and East Ventures (EV). Existing investors AC Ventures, Y Combinator, Genesia Ventures, Two Culture Capital, besides new investors such as Future Shape, Partech Partners, Taurus Ventures, Saison Capital, and GMO VenturePartners, also participated. The round was oversubscribed, and funds were raised at a post-money valuation of more than 20 times the valuation the company received for its pre-seed funding in November 2020. Finantier intends to use the money to scale and enhance its product offerings within Indonesia, strengthen its presence and expand to the Philippines, Thailand, and Vietnam, and double its team size.
Southeast Asia’s large unbanked population presents challenges for financial institutions who lack access to consumer financial data, handicapping them in providing financial services such as payments, lending, and insurance, among others, Finantier explained. To address this, the company works with over 150 companies to aggregate data from alternative sources to give its clients access to a more comprehensive range of datasets and enable the unbanked population to benefit from their digital data footprint. Since the beginning of the year 2021, the company has expanded its team by more than 5 times to 50 employees, while growing its clients and partnerships by over 50 percent month-on-month. “Our business model is a traditional SaaS, with a recurring charge per month according to the usage of our Aggregation API. We are also launching new products later this year that have a slightly different commercial model,” Diego Rojas, co-founder of Finantier said. Additionally, Finantier has appointed Francesco Simoneschi, co-founder of Truelayer (a Temasek-backed open banking platform based in the UK) to its table of Advisors. “Accelerating financial inclusion within Indonesia is crucial given the high unbanked rate. With access to better financial services, these underserved segments of the population can lead better lives and drive growth for the Indonesian economy,” added Willson Cuaca, co-founder at East Ventures.
Founded in 2020, co-founders of Finantier initially wanted to build an Open Banking platform but later decided to switch the idea to build an Open Finance platform as Open Banking would exclude a large amount of the unbanked population in emerging markets. Open banking’s use cases are limited to products offered by banks (loans, credit cards, etc.). Open finance, on the other hand, allows the exchange of data between a wide range of financial companies. Finantier aggregates data from alternative data sources such as gig economy platforms and telcos. After the consent of the user is obtained, these datasets are analysed to provide detailed insights on consumers for financial institutions, allowing them to provide financial services for the unbanked. This, claims the firm, significantly reduces the number of people who lack access to basic financial services, accelerating financial inclusion within Indonesia, which the government has identified as a key priority. “In order to accelerate financial inclusion and to increase innovation in financial services across Indonesia, collaboration is key among regulators, associations, and the private sector. The Finantier team is doing a great job by proactively engaging all the parties while building a fintech platform and a sustainable ecosystem aligned with the vision of a more inclusive country,” Pandu Patria Sjahrir, Founding Partner at AC Ventures and Chairman of Indonesia FinTech Association said.
Sources of information include e27, Tech In Asia, and Fintech Indonesia.