Indonesian conglomerates CT Corp, Salim Group, e-commerce marketplace Bukalapak, ride-hailling firm Grab, used car marketplace Carro, and private equity firm Growtheum Capital Partners have jointly participated in the rights issue of Bank Allo to accelerate the expansion of credit services across Indonesia.

Bank Allo is a fully licensed bank offering personal, business, joint accounts including Paylater, InstantCash, savings and time deposits, e-wallet, top Up, payment and transfer services.

The latest capital raising will increase Bank Allo’s core capital to over IDR6 trillion ($417.89 million), making Allo one of the most well-capitalized digital banks in the country.

“We are excited to launch our lending services in Indonesia, home to a population of close to 280 million people, where 50 percent do not have a bank account and a further 15 percent are considered ‘underbanked’ with limited access to credit, investment and insurance products,

“Bank Allo hopes to provide convenient access to financial products to the entire Indonesian population through a brand that they know and trust,” Bank Allo Commissioner Ali Gunawan said in a statement.

Meanwhile, CT Corp Chairman Chairul Tanjung said he partnership is a step towards providing continuous best services for all Indonesians.

“CT Corp has a large captive customer base of more than 100 million users, with a high number of frequent users that provides a fantastic data set which is the heart of both loyalty programs and credit products,

“We appreciate the efforts of Growtheum Capital Partners to put together a diverse consortium that will allow Allo the opportunity to lend to and to receive deposits from all Indonesians across the breadth of the country by leveraging the combined ecosystem of CT Corp and our strategic partners,” he said.

He strongly believes that the access to the large ecosystem will help Allo grow the number of captive customers, and drive stickiness and usage in its quest to serve various needs of customers’ financial activities while providing unique user experience.

Salim Group President and Chief Executive Officer Anthoni Salim said that they are a trusted brand in the country providing everyday solutions for consumers of all ages and groups through our businesses in food products, retail, consumer services, logistics and technology infrastructure in the country.

“We look forward to working together as a key strategic partner to Allo to build an ecosystem that provides customized and sustainable credit to my fellow Indonesians,” he said.

As for Bukalapak Interim Chief Executive Officer Willix Halim, this partnership can enhance the firm offering and the accessibility of credit to rural entrepreneurs which allows for an even deeper and wider penetration into all corners of Indonesia.

“With mobile phone penetration at 80 percent, the country is well set for digital banking. Combining the tech capability with the offline touchpoints, we can really accelerate the roll-out of these banking services across the country – very much in line with the government’s financial inclusion policy, given that micro, small and medium enterprises (MSMEs) contribute close to 60 percent of the country’s gross domestic product (GDP),” he added.

Meanwhile, Grab Indonesia Country Managing Director Neneng Goenadi believed that an open ecosystem approach will accelerate the digitalisation of the financial industry, and in turn drive financial inclusion across Indonesia.

He opined that this partnership will benefit all Indonesians, including everyday entrepreneurs and small businesses, and equip them to grow together with the emerging digital economy.

Traveloka Chief Executive Officer and Co-Founder of Ferry Unardi also shared the company’s goal through this partnership.

“I am excited to onboard Allo on Traveloka. As a lifestyle superapp, we run an independent platform with diverse credit providers in Indonesia and will work with Allo to tailor lending products to meet the lifestyle needs and aspirations of our customers,” he said.

Carro Co-Founder and Chief Executive Officer Aaron Tan also said that Carro is always looking to innovate and create more differentiated products for our partners and consumers.

“We see this partnership as a continuation of our journey in providing superior digital-first experience and utilizing big data for the benefit of our consumers. The partnership will provide us access to exciting digital-enabled banking products to serve our partners and consumers in Indonesia,” he said.

The partnership between these companies were also highlighted by Managing Partner of Growtheum Capital Partners, Amit Kunal, as key driver to bring positive impact to the business and to meet the individual needs of Indonesians.

“The diverse reach and business model of our consortium partners allows Allo to leverage the strengths of all aspects of offline and online ecosystems. The complementary partnership of trusted brands of CT Corp and Salim Group with leading technology players like Bukalapak, Carro, Grab and Traveloka provide Allo access to customers and merchants use cases in all relevant categories of retail, commerce, ride hailing and delivery, travel, and auto,

“We look forward to working with management and shareholder partners to build customized credit products offering to meet the needs of all Indonesians and help grow the business in a sustainable manner that can last across economic cycles and generations,” he said.

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