Indonesian fintech unicorn OVO has officially launched its financing service named DanaTara on Sunday, which targets small and medium enterprises (SMEs) to help them maximize their potential and expand their businesses, the company announced in an official statement.
“OVO wants to support the government program and boost digital payment penetration, as well as accelerate financial inclusion in Indonesia by introducing OVO DanaTara, a tech-based loan service for warung (small traditional kiosk) owners and SMEs,” OVO’s president director Karaniya Dharmasaputra said in the press release.
DanaTara is already available for SME merchants in e-commerce platforms such as Tokopedia, Lazada, Shopee, and Bukalapak. Businesses can apply for capital loans up to IDR 500 million (USD 35,600) with tenure up to 12 months. The submission process takes two to five workdays, the company says.
OVO also teamed up with Tokopedia and Warung Pintar to initiate the “National Warung Movement”, aiming to raise the public’s awareness and support towards warung operators. OVO said that beside provide financing to Warungs, it also wants to support them with training and education about the implementation of the QR Code Indonesian Standard (QRIS) for e-payments.
Warungs are usually family-owned small kiosks, selling groceries and daily necessities. These micro-enterprises contributes with more than 60% to the Indonesian economy, the minister for Cooperative Small and Medium Enterprises Teten Masduki said at the inauguration of the National Warung Movement in Jakarta on Sunday.
OVO is also one of the investors of Warung Pintar, which translates as “smart kiosk,” a startup that helps to digitize traditional Indonesian roadside vendors.
The firm’s CEO Jason Thompson said in a recent interview with KrASIA that consumer lending will become the company’s focus next year. OVO will also push its financial service by developing its online investment and digital insurance platform. OVO is now available in more than 115 million devices and it has worked with over 500,000 online and offline merchants in Indonesia.