Singaporean finTech firm Helicap Pte Ltd and Indonesian lender PT Bank Danamon Indonesia Tbk (Danamon) have on Thursday announced a strategic partnership to support fintech and alternative lending industry in Indonesia.

This collaboration aims to position the duo as a one-stop solution for non-dilutive growth capital targeting FinTech, alternative lending firms and micro, Small, and Medium Enterprises (MSMEs) across diverse segments including supply chain, leasing, e-commerce, and more, the duo said in a statement.

According to the statement, the synergy will leverage Danamon’s extensive banking network, totalling over consolidated assets of IDR 221 trillion ($14.17 billion) with its subsidiary, PT Adira Dinamika Multi Finance Tbk (Adira Finance), and deep banking expertise in Indonesia, unlocking invaluable insights into market access and industry expertise.

The synergy will also leverage Helicap’s proven diversified debt portfolio track record of six years with no defaults, and cutting-edge proprietary data analytics, offering strong risk assessment, investment selection, and portfolio management capabilities.

The duo also said this partnership goes beyond mere capital provision.

They said it envisions a supportive and innovative funding ecosystem catering to the debt financing needs of non-bank firms at every stage of their growth journey, from seed funding to initial public offering (IPO).

According to the statement, Danamon’s banking infrastructure and product suite will be utilized to drive business growth for Danamon through transaction volume and account openings of Helicap Group’s borrowers, fostering seamless integration.

It said the partnership will enhance visibility for Helicap Group, as it unlocks access to a wider range of products for its borrowers, including cross-border collaborations, credit and cash management solutions.

Meanwhile, Helicap will strive for building a robust flow of risk-managed transactions for Danamon in Indonesia, and the two aim at co-lending to targeted investees, amplifying lending capacities and impact.

Combining Helicap’s technology with Danamon’s banking infrastructure via Danamon Cash Connect will also streamline cash reconciliation, fraud analytics, credit risk monitoring, due diligence, and bank account pledge processes.

Together, Helicap and Danamon are poised to reshape the financial landscape of Southeast Asia, empowering FinTech and alternative lending firms to drive inclusive growth and unlock their full potential.

“This partnership is a watershed moment for the fintech and alternative lending industry in Southeast Asia,

“By combining our credit expertise and resources with Danamon’s extensive reach and banking know-how, we are creating a truly unique and comprehensive solution for FinTech and alternative lending firms across the region,” said David Z Wang, Chief Executive Officer and Co-Founder of Helicap.

Andi S Wahdi, Enterprise Banking Business Head, said that Danamon as part of MUFG, a leading global financial group as well as Japan’s largest bank, is supported by MUFG’s strengths, expertise, and network in serving customers and facilitating business growth to create long-term value for all stakeholders.

“We provide innovative and appropriate financial solutions so that customers can take control of their financial needs and goals,

“Today we are excited to announce our partnership with Helicap as one of leader in the FinTech investment space,” he added.

According to him, this collaboration aligns with the firm’s commitment for supporting innovation and driving financial inclusion in Indonesia and beyond.

Helicap is a Singapore-based fintech firm connecting global investors to private debt opportunities in Southeast Asia.

The company’s goal is to fill a $500 billion financing gap that banks are unable to serve and deploy capital to 300 million underbanked through 1,000 originators in the region.

The company’s equity backers include Japanese financial services firm Credit Saison, Temasek-backed alternative investments firm Tikehau Capital, integrated Asian financial house PhillipCapital, as well as top VC firms East Ventures, Access Ventures, Voveo Capital, and leading Singapore property group Soilbuild Group Holdings.

Over the last six years, Helicap has raised more than $20 million in paid-up capital and deployed over $250 million worth of capital with their in-house data analytics expertise.

By leveraging this advanced data-processing capability, they have indirectly served more than 5 million MSMEs and individuals.

Since its inception, Helicap has built exclusive networks with hundreds of platform partners, who have access to a total of 200 million potential borrowers in the region.

Danamon is an Indonesian bank that was established in 1956. The bank is 92.47 percent owned by MUFG.

As of December 2023, Danamon is supported by a network of 863 conventional branch offices, Sharia units, and subsidiary branch and business network as well as a network of ATMs, ATM Bersama, PRIMA, and ALTO totaling more than 60,000 units spread across 34 provinces.

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