Loans from traditional banks are expensive and difficult to obtain by entrepreneurs and SMEs.
Small businesses and low-income families often cannot provide suitable collateral to secure loans.
Only 26.2% of small businesses were able to obtain loans from traditional banks in 2015.
Taralite is an online P2P loans provider that also manages the wedding finance brand Wedlite. Besides helping young couples to pay for expensive nuptial celebrations, CEO Abraham Viktor also wanted to expand the fintech to cater to the needs of Indonesia’s underserved personal loan and SME business loan sectors.
Recently endorsed with a fintech certification by Indonesia’s Financial Services Authority OJK, Taralite offers multipurpose and business loans to the bankables and unbankables. It also partners with e-commerce giants, such as Tokopedia and MatahariMall.com, to offer specially packaged B2C and B2B financial products to their consumers and vendors.
Applications are normally processed within five days. The loans vary from IDR 5 million (US$ 379) to IDR 500 million (US$ 37,870), with administration fees payable at the higher of IDR 100,000 or 1% of loan value. Collateral is generally not required, but borrowers will incur daily penalty charges of 0.1% of the loan amount that is still unpaid after the repayment date falls due.
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January–May, Wedlite was launched as a wedding finance brand.
Wedlite partnered with microfinance lenders to repackage their loans into more flexible and affordable personal loan plans for couples to pay for wedding celebrations.
By April, a new general loans platform Taralite was formed to incorporate the Wedlite brand as part of PT Indonusa Bara Sejahtera. More consumer loans were added, including those for Hajj pilgrimages and education.
Loan enquiries reached 170 and with three collateral-supported loans approved by the end of May.
June, Wedlite joined the Global Entrepreneurship Program Indonesia (GEPI) incubator and received mentorship from Tokopedia co-founder William Tanuwijaya.
November, raised undisclosed amount of seed funding from Angel Investor Network Indonesia (ANGIN) after graduating from the GEPI incubator program.
Funds were used to increase marketing activities and number of employees.
Taralite streamlined loan products, reduced fees and focused on scaling the business loans division to target online entrepreneurs who were keen to set up shop on e-commerce platforms like Tokopedia.
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August, Taralite competed with other ASEAN tech finalists at the Startup World Cup (Southeast Asia) in Jakarta that was won by on-demand laundry app Ahlijasa to represent the region at the Silicon Valley grand finale in March 2017.
In May 2017, Taralite raised US$ 6.3 million from Tokopedia backer SBI Investment, part of the VC arm of Japan-based financial services SBI Group. Funds to be used to develop more P2P and other financial products to be made available to over 1,000 customers, with a targeted 70% retention rate.
In July 2017, Indonesian Financial Services Authority OJK issued a fintech license to PT Indonusa Bara Sejahtera that operates Taralite and Wedlite. Local fintech competitors include UangTeman, Investree, Modalku, Crowdo, Koinworks and Kitabisa.
SBI Investment funding and know-how will support Taralite’s R&D expansion to transform the loans platform into a one-stop financial products online and digital marketplace. Insurance and credit cards will be developed as new services to be added in future.
Data from online vendors and customers who have borrowed from Taralite and its partners will be collated to assess their credit ratings and consumption behavior for future loans and services.