FinFra Launches to Address Financial Fraud Using Advanced AI Solutions .
FinFra, an Indonesian startup that offers tech infrastructure for online businesses seeking to provide embedded finance products, has successfully raised $1 million in new funding. The funding round actively engaged investors such as DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund.
While not restricted to a specific industry, FinFra's attention is directed towards digital supply chain platforms, technology enterprises, and merchant e-commerce platforms, as indicated by its co-founder and CEO, Markus Prommik.. The startup offers a loan management system that empowers businesses to extend credit to their clients via their respective platforms.. One of the most popular applications of FinFra is among businesses aiming to integrate invoice financing or purchase financing solutions. While FinFra's primary clientele is in the B2B sector, its services are also adaptable for B2C applications.
Prommik describes FinFra as a "one-stop shop for launching and scaling white-labelled credit services," noting that without the startup, clients would need to invest millions of dollars in developing the necessary technology and infrastructure, spending up to five years to acquire lending licenses and build a team. In contrast, by utilizing FinFra’s APIs, they can start offering embedded finance within a matter of weeks.
The key value proposition of FinFra lies in its control over the customer experience. It integrates risk controls and data from clients' platforms, enabling them to extend affordable credit without taking on excessive risk. FinFra also provides portfolio analytics to assist customers in monitoring performance and key lending KPIs.
Prommik asserts that FinFra differentiates itself from other embedded finance platforms that focus on payments, data, and infrastructure by not directly offering credit, despite credit being the most in-demand financial service. Rather than considering them competitors, FinFra views these platforms as potential allies.
An important factor that FinFra believes will drive its growth is the Indonesian Financial Services Authority (OJK), which aims to achieve 90% financial inclusion by 2024, up from 75% in 2019. Despite the proliferation of online platforms in Indonesia, a significant number of individuals and small businesses still lack access to credit through traditional means, such as banks. Instead, they rely on alternatives like embedded finance.
Patricia Sosrodjojo, General Partner at Seedstars International Ventures, stated, "We have observed analogous endeavours thrive in emerging markets, where MSMEs face considerable obstacles in attaining capital. FinFra's strategy not only conforms to national economic development objectives but also strategically addresses the demands of this swiftly expanding market.
