Amartha
P2P lending platform for Indonesian women micro-entrepreneurs.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor | €0.0 | round |
| investor | €0.0 | round | |
| investor investor investor investor investor | €0.0 | round | |
| investor investor | €0.0 | round | |
| investor | €0.0 | round | |
$7.5m | Early VC | ||
| Total Funding | 000k | ||
Amartha is an Indonesian financial technology company that operates a peer-to-peer (P2P) lending platform connecting unbanked and underbanked individuals, particularly women micro-entrepreneurs in rural areas, with investors seeking to make impactful investments. The company generates revenue primarily through transaction fees from facilitating these loans.
Founded in 2010 by Andi Taufan Garuda Putra, Amartha began as a conventional microfinance institution. Inspired by the Grameen Bank model, Putra initially focused on providing small group loans to women in a village in Bogor, West Java, to help them start and grow their businesses. A significant milestone occurred in 2015-2016 when the company faced a funding crisis, as demand for loans outstripped the capital available from traditional banks. This challenge prompted a strategic pivot, transforming Amartha into a technology-driven P2P lending marketplace, which allowed it to source capital from a wider range of individual and institutional investors.
The business model combines a group lending system with a P2P technology platform. Borrowers, primarily women in rural Indonesia, form groups of 15-20 members who are jointly responsible for loan repayments, a method that significantly reduces default rates. Amartha serves as the intermediary, connecting these entrepreneurs with lenders through its digital platform. The company has developed a proprietary credit scoring system to assess the financial risk of borrowers who lack traditional credit histories. Beyond lending, Amartha's ecosystem includes services like payments, savings, and financial literacy training, aiming to build a comprehensive digital financial infrastructure for the grassroots economy.
Keywords: microfinance, peer-to-peer lending, P2P lending, financial technology, fintech, women entrepreneurs, rural finance, impact investing, Indonesia, financial inclusion, microloans, SME financing, digital lending, working capital, social impact, group lending, emerging markets, credit scoring, grassroots economy, unbanked