Ringkas, an Indonesia-based digital mortgage platform, announced Wednesday it has secured a US$3.5 million in seed round co-led by East Ventures and Crestone Venture Capital.
Other investors that participated include 500 Global, Teja Ventures, Orvel Ventures, Hustle Fund, and others, Ringkas said in a statement.
With the capital from this round, the company will focus on advancing and scaling its platform across multiple cities in Indonesia and the secondary market.
Ringkas Co-Founder Ilya Kravtsov said that after securing the latest funding round, the firm aims to achieve mortgage transactions worth up to $200 million within the next 6-12 months and launch over 100 projects in 34 cities across Indonesia.
He said that this latest funding round will also accelerate the adoption of Ringkas technology in unserved regions throughout Indonesia.
Ringkas is a digital housing finance solution platform founded by Ilya Kravtsov, Leroy Pinto, Puguh Widyoko, and Yoko Simon in early 2022.
The firm was developed after the four co-founders found a solution to the problem of home ownership in Indonesia, particularly the extremely low mortgage penetration rate of only 3.25 percent of the total gross domestic product (GDP).
This figure is significantly lower compared to India, which has a mortgage penetration rate of 11 percent of GDP, and the United States, which has a mortgage penetration rate of over 50 percent of GDP.
Additionally, Indonesia faces the challenge of a housing backlog reaching 12.75 million units, which continues to increase each year.
Ringkas aims to bridge the gap between millions of home seekers, 12,000 property developers, and 1,200 banks and financial institutions, enabling faster and more targeted mortgage processing.
The firm has a grand vision of helping 100 million Indonesians facilitate home purchases through mortgages.
Ringkas is poised to revolutionize the mortgage industry by providing a comprehensive solution that simplifies the entire process.
Unlike conventional mortgages that involve fragmented pre-qualification processes, lengthy manual applications, and limited transparency, Ringkas offers a streamlined approach.
With real-time pre-qualification and a user-friendly digital platform, consumers can effortlessly apply for mortgages to multiple banks simultaneously, ensuring convenience, transparency, and a wide range of reliable options.
Additionally, one of Ringkas primary focuses is ensuring the security of consumer data.
The firm provides security, audit trails, and limits data access to relevant parties involved in the mortgage process.
“We are thrilled to support Ringkas on their mission to revolutionize the home ownership financing solution,
“With the strong track record, we believe its innovative solutions will enable a more convenient and efficient process of home ownership for millions of Indonesians,” said Avina Sugiarto, Partner at East Ventures.
To support data security, Ringkas has become a regulated digital financial innovation operator by OJK (Indonesia’s Financial Services Authority) since early 2023 and has obtained ISO27001 certification related to customer privacy and data security.
To date, Ringkas has secured more than $2 billion of housing supply by partnering with the largest property developers and is currently live in five cities.
Ringkas has also partnered with many leading banks in the country, such as BCA, Bank Mandiri, Bank Syariah Indonesia, BRI, Bank CIMB Niaga, Bank Permata, Bank Danamon, Bank Maybank Indonesia, OCBC NISP, UOB Indonesia, Bank Panin, Bank CCB Indonesia, and many others.
“We are committed to supporting Ringkas in achieving its mission to make home ownership faster, easier, and more affordable for all Indonesians,” said Crestone Venture Capital Co-Founding Partner Inanc Balci.
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