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This presentation document is strictly confidential and solely for the use of
PT investree Radhika Jaya and investree (Thailand) Limited. The content
have been summarized to suit presentation needs; for actual definitions,
descriptions and exclusion, please refer to the corresponding directorate.
2019 | PT investree Radhika Jaya
InvestreeIndonesia’s Leading SME Marketplace
Lending
November 2019
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
“The needs of having a large
working capital at the beginning is
a big challenge for SMEs engaged
in the content creation industry.
This usually forces smaller
companies to forego big business
opportunities. Luckily, I met
Investree which was able to help
me conquer this challenge”
The USD 0.4 mio funding amount
from Investree helped Iman double
sales to USD 1.5 mio in 2018 and
further fuelled the company’s
growth.Iman SyafeiFounder, ReKreasi Creative
Playground
(Marketing and Advertising Agency
founded in 2014)
Impact Story
2
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
TOTAL
POPULATIONINTERNET
USERS
268.2Million
150.2Million
URBANISATION
56%PENETRATION
56%
E-COMMERCE
CONSUMERS
107Million
YoY CHANGE
5.9%
MOBILE
CONNECTIONS
355.5Million
% OF POPULATION
133%
BANK AC
PENETRATIONCREDIT CARD
PENETRATION
49%PENETRATION
2.4%PENETRATION
MOBILE MONEY
ACCOUNT
MSMEs ACCESS
TO CREDIT
3.1%PERCENTAGE
Indonesia is likely to be less impacted by the possible US-China trade
war due to its lower global value chain participation and linkages with
China. Also, Indonesia’s credit cycle is in a recovery phase while most
economies have a slowing phase of the credit cycle. – AMRO Asia
OPPORTUNITIES FINANCIAL INCLUSION
Global Perspective
26%RATIO
Indonesia - Largest economy in South East AsiaBlooming into a Digital Economy Era
Source:: Digital 2019 Indonesia, World Bank, AMRO
3
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
2,563
22,665
54,714
259,635
4,359,448
12,832,271
Fintech Lending GrowthIn Indonesia
Fintech Lending
Start-up
Registered and Supervised
by OJK
127 Fintech Lending Players supervised
by Indonesia Financial Authority (OJK)
Dec-
17
Dec-
18Aug-19
Dec-
17Dec-
18Aug-19 Dec-17 Dec-18 Aug-19
Source: OJK – Aug 2019
100,940
207,506
530,385
Lender
Accounts
Borrower
AccountsLoans Distributed
(IDR Million)
Registere
d
114
Licensed
13
Conventional
119
Shariah
8
Total
127
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Lender & BorrowerCharacteristics
Source: OJK – Aug 2019
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
What problems are we solving? Serving the Underserved $165.8 bio Credit Gap
Source: SME Finance Forum (Managed by IFC), The Edge Singapore – “Addressing Indonesia’s Financial
Inclusion Gap”, Bank Indonesia
Financial
Knowledge
High Bank Costs
Less Focus
Despite
Regulatory
Enforcement
High Growth
of Corporate
Sector
Lack of
Robust
Credit
Scoring
High customer
acquisition and
servicing costs in rural
areas as traditional
banks do not leverage
technology $165.8
Billion
MSME Credit
Gap in
Indonesia
Many MSMEs lack the financial
knowledge to comply with the procedures
and requirements set by conventional banks
Unbankable
60 million MSMEs in
Indonesia are
considered high risk
and “unbankable”, with
no collateral and no
credit history
Lack of robust credit scoring system,
with the credit assessment process
being labor intensive
Bank of Indonesia
Regulation No.
17/12/PBI/2015 enforces
a minimum credit portion
served to MSMEs by
banks, however only 60%
of banks reached the
minimum of 15% (2017)
Many large banks focus
more on corporate
sector, evident in the
higher growth of
corporate vs MSME
6
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Business
Segment
Consumer
Segment
Corporate
(> USD 14.2
mio sales per
year)
Commercial (USD
3.5 - 14.2
mio sales per year)
Upper income
(> USD 4.3k per
year)
Medium
(USD 0.2 - 3.5 mio
sales per year)
Mass affluent
income
(USD 2.6 –
4.3k per year)
Mass income
(USD 1.3 – 2.6k
per year)
Lower income
(<USD 1.3k
per year)
Micro SME
< USD 0.02
mio sales
per year
Small
(USD 0.02 – 0.2
mio sales per
year)
• On the business borrower segment
side, SMEs are firms whose
financial requirements are too
large for microfinance, but are too
small to be effectively served by
corporate banking models
• On the consumer borrower
segment, the missing middle
segment falls below the banks
primary target and are seldom not
served by them
• Registered total number of MSME is
60 mio companies mostly
considered Micro.
• SMEs contribute 59% of the
country’s GDP and employ’s 97% of
the country’s total workforce
• SMEs contribution growth on
investment on average/year is 8.5-
10.5%
SMEs – The Missing Middle in IndonesiaThat can empower Small and Medium Entrepreneurs
Source: PwC, OJK, World Bank, Global Findex 2018
Exchange rate: 1 USD = 14,117 RP
P2B
Len
din
g S
pace
Ban
k’s
Pri
mary
Targ
et
Ban
k’s
Prim
ary
Targ
et
7
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
21 1841,629
5,313
15,797
2016 2017 2018 2019 2020
CAGR
793%
CAG
R
214%
Fintech Lending Market
Fintech Lending in Indonesia will reach USD 15.8 bio of accumulative loan
disbursements in 2020 , representing an increment of USD 14.2 bio from 2018 to
2020
Actual Forecasted
Source: PwC, OJK, World Bank, Global Findex 2018
Exchange rate: 1 USD = 14,117 RP
Accumulative Loan Disbursements (USD mio)
Key Drivers of Fintech Lending Growth
Mobile phone subscription growth is
steady going forward, which supports the
awareness and adoption rate of Fintech
Lending
The increase use cases of Fintech
Lending, as a result of collaborations with
other digital platforms (ie. E-commerce,
ride-haling, logistics) and acceptance from
various customer segments
The development of supportive IT
infrastructure and digital IDs, resulting in
wider coverage and faster KYC processes,
which will produce a steady retention and
adoption ratio
Market OpportunityFintech Lending to reach USD 15.8 bio by 2020
8
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Our mission is to use technology and data to make loans more affordable and accessible to SMEs
9
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Loan Application
Platform Fees
Loan evaluation
and selection
Platform Fees
Loan Agreement
Loan Investment
Loan Repayment
Interest Payment
SME Borrower
Private Lenders
Institutional Lenders
Investree Lending
Platform
Revenue Model:
• Market Place Fees: 3-5% of
loan amount paid by
borrower
• Lender Fees: 0.5–2% of
funding amount paid by
institutional lender
Investree is a pure marketplace.
It matches borrowers and
lenders through its platform
and does not fund any loans
itself
Administer Loan Process
Legal Agreements,
repayment and monitoring
Due Dilligence Using
Robust Credit Risk
Analysis
Matching
Borrower
and Lender
2 3
Safety & Security by
Specialized Credit Insurance facility
4
The Business ModelA B2B Marketplace Lending Platform for SMEs
1
11
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Suppliers &
Vendors
Borrower Demographics
Institutional Business & Retail Borrowers
Small
ManufacturersResellers Online Merchants
21%
15%
13%12%
12%
9%
5%
4%4%
3%2%
Creative & Media
Food & Food Processing
Trade
Technology
Services
Heavy Industry
Utilities
Logistics & Transportation
Manufacturing
Consultation
Construction
21% Borrowers are from Creative & Media
Industries
The BorrowerFast and Flexible Loans
Source:: Borrower Demographics as on YTD 2019
12
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Annual Disbursed Institutional Lending has
increased to approximately 20% since inception
Business Loans, Government Retail Bonds, Money Market
Funds
Institutional Onshore
Lenders
Institutional Offshore
Lenders
Domestic Retail
Lenders
Lender Presence Heat Map Lender Demographics
Age Group 21-30 constitute 57% of retail lenders
Retail Lenders are present across
Indonesia with 84% of them in Java
99% 96%
80% 81%
1% 4%
20% 19%
Dec-16 Dec-17 Dec-18 July-19
Retail Lender Institutional Lender
Excludes
$14.2m (Rp
200 bio)
agreed
financing
capacity by
Bank BRI
The LenderSecured and Transparent Transactions
Source:: Lender Presence and Age Group Data as on July-19
13
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Disbursem
ent
Loan
Grading
Risk Based
Pricing
Borrowers Credit Bureau AML-AT
Traditional Data
Rule Based
Engine
Scoring
Models
Machine
Learning
Monitoring &
Control
Proprietary risk scoring engine
Decisi
on
Engine
Risk GradingBullet Payment Loan
(Effective per Annum)
A + 12%
A 13% – 14%
B 15% – 16%
C 17% – 19%
C - 19% – 20%
Account-
ing
Software
E-commercePayment
GatewayProcurement
Non - Traditional Data
Invoice Financing Loan rates Internal
Data
We Generate our own Risk Scoring Model Using Traditional and Non-traditional Data
14
Invoice Financing Buyer Financing Working Capital
Term Loans
Online Seller
Financing
Government Retail
Bond
What is it?
Short term invoice
financing of reputable
payers. Also includes pre-
invoice and account
payable financing
Limit
• 80% of invoice value
• Up to IDR 2 Bio (USD
138,00)
Tenor
• 14-180 days
• Bullet repayment
options
Average Loan Size*
USD 36,761
What is it?
Loans available for buyers
/ distributors / resellers of
the supply chain
Limit
• 100% LTV from
Purchase Order
• Up to IDR 2 Bio (USD
138,000)
Tenor
6-12 months
Average Loan Size*
USD 87,483
What is it?
(1) Regular Term Loan
(2) Contract Based
Financing
(3) Merchant Cash
Advance
Limit
• 80% of LTV of online
sales or 80% of
contract value
• Up to IDR 2 Bio
(US138,000)
Tenor
MCA – Upto 24 months,
Regular – Upto 12 months
Average Loan Size*
USD 44,899
What is it?
Historical data based
working capital loans to
sellers on e-commerce
marketplaces
Limit
• Based on IDIR
Calculation
• Up to IDR 2 Bio (USD
138,000)
Tenor
Up to 24 months
Average Loan Size *
USD 2,551
What is it?
• Mandated by Ministry of
Finance for online
distribution of
government bonds
• Risk free investment
grade
Limit
Investment starts from IDR
1 Mio (USD 68)
Shariah approved product / in-progress
Share
74%
* Based on loans disbursed and no. of borrower transactions
in July 2019Copyright 2019 | PT Investree Radhika Jaya
Our Product OfferingInvoice Financing constitutes 74% of the product portfolio
Share
6%
Share
13%
Share
1%Share
6%
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
E-ProcurementRegional
Expansion
SME
Credit
Scoring
E-Invoice &
Cloud ERPE-Commerce
Payment
Gateway
E-Procurement solution to
stack along with existing
SME financing solution
Collaboration with third-
parties to tap into
government, SOE, and
private supply chains
In-house credit scoring
capability designed
specifically for SMEs
Leverage AI and technology
to improve internal loan
quality
Provide credit scoring as a
service to other parties
Collaboration with third-party
E-invoice solution to stack
along with existing SME
financing solution
Leverage existing anchors to
tap into both customer and
supplier side for e-invoicing
Collaboration with third-party
Future plan to integrate with
ERP or cloud accounting
Regional expansion into
Thailand and Philippines
Maintain market leader
position in Indonesian SME
B2B lending marketplace
Tap into international
institutional lender base
Tap into both on-line and
off-line payment gateways
Leverage partners’
payment capabilities for
access to data, payment
security and channelling
To supplement e-
procurement, e-invoicing,
and ERP capabilities
Strategic partnerships
with top e-commerce
platforms to tap into
online sellers
Leverage partners’
ecosystem for access
to data and channelling
Investree Eco-System
Exclusive JV
Initiatives
Non-JV Initiatives
Evolving from traditional P2P to B2B SME Lending Marketplace
Credit
Scoring
USD 225 mio
Cum. Loan
Origination
2019 Origination
till 2019 Sep USD 106 mio
17,066
Lenders
Active Lenders
till Sep 2019
1,193
Borrowers
Active Borrowers
till Sep 2019
1,5%
90+ DPD
Loan Quality
till Sep 2019
Investree Growth – Up till Q3 2019Strong growth in Loan Origination
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Adrian Gunadi
Co-Founder & CEO
Dr. Amiruddin
Co-Founder
KC Lim
Co-Founder
Eri Reksoprodjo
Chairman
• Over 18 years foreign and local
banking experience in the retail
and wholesale sectors
• Last 6 years’ experience as
Managing Director Retail
Banking of Bank Muamalat
Indonesia
• Endeavor Entrepreneur
• Current Chairman of AFPI
• Extensive experience in the
banking and financial industry
since 1994
• Previously worked in companies
such as British Gas, Bakrie
Finance, AAA Securities,
Deutsche Bank, Nomura
• Last role was Head of Indonesia –
Wealth Management di Sumitomo
Mitsui Banking Corporation
• A senior finance professional
with 27 years experience.
Currently, Managing Partner of
Kejora Ventures
• Previously, Country
Manager/Executive Director at
Natixis, Partner at Saratoga
Investama Sedaya and Senior
Advisor for SGD 300 million SE
Asia fund
• Over 21 years banking career
experience
• Last role was FICC sales for
Goldman Sachs in SE Asia
• CFA Charterholder
• Splits his time between
Singapore, Indonesia and
Thailand
TeamExperienced bankers with skin in the game
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Muliaman D. Hadad
Senior Advisor
Azharuddin Lathif
Shariah Supervisory Board
M. Suaidy Masud
Shariah Supervisory Board
• Currently officiates as Ambassador
of the Embassy of The Republic of
Indonesia to Switzerland and
Liechtenstein
• Former Deputy Governor of Bank
Indonesia and former Chairman of
the Board of Commissioners of the
Financial Services Authority
• Currently serves as Director of the
Sharia Supervisory Board – The
Indonesian Council of Ulama (DSN-MUI)
Institute
• Consultant in Legal Constituition and
Legal Aid Institute, of Shariah Faculty
Law of Syarif Hidayatullah UIN
Jakartaand Arbitrators in National Sharia
Arbitration Board (Basyaras) MUI
• Currently Secretary to the Economic
Empowerment Commission at the
Indonesian Islamic Leadership Assembly
(MUI)
• Currently Vice-Director for the Shariah
Business Incubation Center (Pinbas), also
at MUI
• Currently Vice-Chairman Indonesian
Islamic Merchant Association (ISMI)
• Currently Expert Staff to Legislative
Council
AdvisorsWith Regulatory and Shariah expertise
Fajar
Technology Advisor
• Cofounder and CTO of Happyfresh,
online grocery startup based
• Ex-Engineering director at Yahoo
• Cofounded Koprol, a mobile social
network, sold to Yahoo
• Ex-Lead Software Engineer at Gap
Inc.
• Computer science engineering
graduate from Ohio State University
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
Salman Baharuddin
Chief of SalesAmalia Safitri
Chief of Risk
Ade Fauzan
Chief Operation Officer
Dickie WIdjaja
Chief Information OfficerAstranivari
Chief Marketing Officer
Ex- Citibank, Credit
Suisse, UBSEx- Citibank, HSBC,
Maybank, Danamon
Ex- Permatabank, Bank
Muamalat, Maybank,
BTPN
Ex- Indosat, Citibank,
Phillips Indonesia
Ex- Lycos Asia, AstraWorld,
Telkomsel, Current Vice-
Chair of AFTECH
Senior Management That lead a team of 170+ professionals
Ex- BFI Finance, VIVA,
Telkomsel, Citilink, Bank
BTPN, Mandiri
Ariyo Putro
Chief of Human Capital
Andi Andries
Chief Product Officer
Ex-Indosurya, Danamon,
GE CapItal, ANZ, Lippo
Daniel Armanto
Chief Technology Officer
Ex- Tiket.com, Yahoo,
Happy5, Adskom
Copyright 2019 | PT Investree Radhika Jaya CONFIDENTIAL
“Empowering many
more Imans out
there”
Iman SyafeiFounder, ReKreasi Creative Playground
(Marketing and Advertising Agency
founded in 2014)