Indonesian e-commerce unicorn Tokopedia has deepened its collaboration with Modalku, a P2P lending platform, to provide merchants in the country access to “Modal Toko”, a platform which offers them loan products to grow both their business and revenue.
Launched in April 2019, Modal Toko just received a lending license from the Financial Services Authority (OJK) meaning merchants can get a capital loan up to IDR 300 million (USD 21,400) that can be withdrawn anytime following an easy application process.
The loan approval process takes one day and merchants can get a loan with flat-to-low interest rates without admin fees, according to an official statement.
By allowing merchants quick access to funds, for inventory purchases for example, the facility provided by Modal Toko is expected to help merchants increase revenues because they can widen the product range that they sell to customers.
In an official statement, Tokopedia claims merchants’ incomes after disbursing loans through Modal Toko increased by 50% on average, with the merchants’ average number of orders increasing by 2.5 times.
The main difference between these two and the new partnership with Modalku lies in the maximum loan amount and the repayment period.
Modalku is a Jakarta-based P2P platform that focuses on providing financial services for SMEs. Besides with Tokopedia, the platform also formed a partnership with Bukalapak’s Modal Mitra to offer capital loans for merchants on Bukalapak’s platform. Modalku also works with Lazada to offer loan products for e-commerce sellers.
The online lender has a presence in Singapore and Malaysia under the brand Funding Societies. According to its official website, the company has disbursed loans totaling USD 483 million to SMEs across Southeast Asia since its establishment in 2016.