NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, September 24, 2019

JULO, a leading peer-to-peer lender offering personal loans across Indonesia, today announced a $10 million extension round to its Series A financing. The round was led by Quona Capital, a leading fintech venture firm whose funds are sponsored by Accion, with participation from existing investors Skystar, East Ventures, Provident, Gobi Partners and Convergence. The new funding will provide growth capital to help JULO expand its business and build enhancements to its proprietary credit scoring technology.

JULO was established in 2017 by co-founders Adrianus Hitijahubessy and Hans Sebastian.  The company offers affordable unsecured consumer loans via digital channels using alternative data to power its proprietary credit scoring technology. The company’s loans offer some of the lowest rates in Indonesia for short-term unsecured personal loans. Most loans are 3-6 month installment loans with a monthly flat fee. JULO’s average loan size is $300.

“Access to affordable personal loans on a short-term basis is often the difference between a family being able to pay for its daily needs like education, or not,” said Adrianus, co-founder and CEO of JULO. “At JULO, we use proprietary credit scoring technology to put money in the hands of people who need it to pay for education, home improvements, or working capital — all at affordable rates.”

JULO’s core product, a 3- to 6-month installment loan, is priced at a variable rate of 3-5% per month, with a nominal origination fee charged to lenders.

“Quona Capital is excited to lead the investment in JULO as it works to enable consumers in Indonesia to access the short-term capital they need to get ahead,” said Ganesh Rengaswamy, Quona Capital co-founder and partner. “A significant majority of JULO’s loans are used for productive purposes that can enhance the economic well-being of families and small businesses — driving financial inclusion in Indonesia, which is a cornerstone of Quona’s focus.”

Quona Capital is a venture capital firm focused on fintech for inclusion in emerging markets, leveraging a strategic relationship with Accion, a non-profit financial inclusion pioneer.

“Since we invested a couple of years ago, JULO has continued to grow while maintaining its vision of providing affordable and responsible credit to the majority of Indonesian consumers who lacked other options. We look forward to continue supporting them together with other stakeholders to bring financial inclusion to the masses,” said Abraham Hidayat, Managing Partner of Skystar Capital, which also invested.

“Adri and team have continuously delivered results beyond our expectations and we are honored to be able to support them in each round and part of this venture,” said Willson Cuaca, Managing Partner of East Ventures, which also participated in this fundraising round.

“JULO brings an affordable loan product to many without access to credit that will help them enhance their livelihoods and future prospects,” said Adrian Li, Managing Partner at Convergence Ventures. “JULO stands out from the team’s depth of experience and the technology they have built to enable this service.”

Photo courtesy of Seika.