Modalku

About Modalku

Modalku, operating under PT Mitrausaha Indonesia Grup, is a digital financing platform in Southeast Asia, also known as Funding Societies in Singapore, Malaysia, Thailand, and Vietnam. The company was established to address the significant financing gap faced by Micro, Small, and Medium Enterprises (MSMEs), which are often underserved by traditional financial institutions. The firm was co-founded in 2015 by Kelvin Teo and Reynold Wijaya while they were classmates at Harvard Business School. Reynold Wijaya's firsthand experience with his family's SME journey in Indonesia fueled his desire to support fellow entrepreneurs, while Kelvin Teo's background in consulting exposed him to the widespread financing struggles of SMEs.

The company operates a peer-to-peer (P2P) financing marketplace that connects creditworthy MSMEs with individual and institutional investors. This model provides MSMEs with access to working capital loans without the collateral typically required by banks, while offering lenders alternative investment opportunities with competitive returns. Modalku's revenue is generated from a combination of payment fees, service fees on loans, and interest income. The platform leverages a proprietary data and risk-modeling system, utilizing AI and alternative data points like transaction history and e-commerce data to assess creditworthiness, enabling loan disbursements in as little as two hours.

Since its launch in Indonesia in 2016, Modalku has expanded its product offerings beyond term loans to include a diverse range of financing solutions tailored to SME needs. These include invoice financing, microloans, dealer financing, and a B2B paylater facility called Virtual Credit. Demonstrating a strategy of diversification, the parent company Funding Societies has also moved into payment solutions through the acquisition of CardUp and co-invested in Bank Index in Indonesia. The group has disbursed over US$4 billion in financing across more than 5 million transactions, serving nearly 100,000 SMEs in the region. Modalku is licensed and supervised by the Indonesian Financial Services Authority (OJK), underscoring its commitment to regulatory compliance and consumer protection.