Picture Credit: Flip
Flip, an Indonesia-based fintech startup, introduced at this time it has raised $48 million in a Collection B to speed up its development. The funding brings Flip’s whole capital raised to $65 million.
Sequoia Capital India, Perception Companions and Insignia Ventures Companions co-led the Collection B spherical. Flip is Perception Companions’ first funding in Indonesia.
The startup plans to make use of the recent capital to speed up its enterprise enlargement additional, strengthen its operations in Indonesia, advance know-how and increase its engineering and product groups.
“This new funding is a testomony to our workforce’s dedication and persistence. It offers us the assets we have to gas and speed up our mission to construct modern options that simplify cash motion in Indonesia,” stated Rafi Putra Arriyan, co-founder and CEO of Flip.
Arriyan, Luqman Sungkar and Ginanjar Ibnu Solikhin co-founded the corporate in 2015 whereas learning at College of Indonesia. They constructed the Flip platform to search out a solution to the issue Arriyan himself skilled as a university scholar — having to attend for a very long time to switch funds and pay a switch payment every time to completely different banks.
In Indonesia, transferring cash might be tedious for checking account holders — from funds getting caught whereas transferring to prolonged clerical processes and poor product experiences with outdated interfaces and complex circulation. Flip hopes to vary that by serving to people and companies to remove complexity and execute their cash switch at a low price.
Flip, which intends to be essentially the most customer-centric monetary know-how firm on this planet, permits customers to do honest monetary transactions from wherever to anybody. The startup obtained a license from Financial institution Indonesia (BI) in 2016 to supply monetary providers, together with interbank transfers to greater than 100 home banks, worldwide remittances, e-wallet top-ups, wage transfers and enterprise answer merchandise.
The corporate stated the annual quantity of cash switch in Indonesia was recorded at a nominal worth of greater than $2.2 trillion in 2020, citing Financial institution Indonesia’s knowledge.
“Interbank switch is essentially the most dominant fee methodology in Indonesia’s fast-growing digital economic system. Flip has an enormous consumer base and is rising quickly with excellent retention metrics, all of which level to the pleasant and seamless product that the corporate has constructed… Sequoia Capital India believes that Flip is essentially the most thrilling client fintech firm in Indonesia. The agency is thrilled to be main the third consecutive spherical, testomony of its excessive conviction within the firm,” stated Aakash Kapoor, vice chairman of Sequoia India.
Flip serves greater than seven million customers for varied varieties of economic transactions from and to completely different areas in Indonesia and abroad cash transfers. Greater than 340 Indonesian firms and SMEs in journey, hospitality, e-commerce, transportation, training, outsourcing, crowdfunding and enterprise administration sectors use Flip’s worker payroll, buyer refunds, bill/ provider funds and worldwide transfers.
Its customers have elevated 10x in comparison with earlier than the pandemic, following the rise of know-how adoption and mobility restrictions in Indonesia, Arriyan stated. Throughout the pandemic, the protocol round mobility restriction in Indonesia resulted in most financial institution places of work closing, requiring folks to make use of technology-based options for his or her monetary transactions, he continued. The shift in client conduct from visiting financial institution branches to utilizing digital merchandise elevated customers, Arriyan added.
“Flip is disrupting the present interbank switch market and has established itself as a transparent chief within the class, with its superior product that enables for seamless fee motion between financial institution companions,” stated Deven Parekh, managing director at Perception Companions.
“As the primary institutional investor in Flip, we now have witnessed the unbelievable development of the product and the execution of the workforce over the previous two years. Flip is now the dominant participant in its area, with hundreds of thousands of Indonesians trusting the platform for his or her day-to-day monetary wants,” stated Samir Chaibi, principal at Insignia Ventures Companions.
Flip has added over 250 workforce members to construct its monetary providers for hundreds of thousands of Indonesian folks. The corporate has elevated its workforce dimension by 140% over the previous months.