Startup Spotlight — Finfra
In this edition of “Startup Spotlight,” we feature Finfra, a FinTech leader revolutionizing lending in Indonesia. Co-founder Reinis Simanovskis discusses how their innovative API-driven platform seamlessly integrates financial services into diverse digital businesses, particularly in underbanked sectors. Finfra’s commitment to meticulous accuracy, regulatory compliance, and data-driven decision-making is not only enhancing credit accessibility but also setting new benchmarks in the FinTech industry. Join us for an insightful exploration of Finfra’s impactful journey in the Southeast Asian financial landscape.
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Edward: Could you briefly introduce Finfra and the services you offer?
Reinis: Finfra is the one-stop shop for businesses in Indonesia looking to integrate white-labelled lending products. Our API-driven embedded lending infrastructure empowers non-financial digital platforms to incorporate financial products, especially credit lending, into their distribution channels. We offer an end-to-end loan management system, sophisticated scoring, portfolio analytics, and access to debt capital, revolutionizing the lending landscape in a region where banking services are still limited.
Edward: What main problem does Finfra tackle?
Reinis: Our focus is on enabling businesses to integrate financial products and services seamlessly into the core operations of digital businesses. We primarily cater to businesses traditionally not associated with lending, but who are eager to adopt our services. We craft bespoke lending solutions that not only meet the needs of these businesses but also significantly enhance their customer experience. The current market trend indicates a strong demand for flexible lending options, particularly in underserved sectors, and we’re committed to fulfilling this need.
Edward: What inspired Finfra’s creation?
Reinis: The inception of Finfra stemmed from two key observations: the rapid growth of digital businesses in Indonesia and the pervasive underbanked status of the region. We saw an opportunity to assist these businesses in increasing their revenue and serving their customers more effectively, while also addressing the critical issue of limited credit availability.
Edward: Please summarize Finfra’s primary mission in one sentence.
Reinis: Our mission is to facilitate and scale the lending capabilities of non-financial startups in Southeast Asia, thereby significantly enhancing credit accessibility for both individuals and small business owners in the region.
Edward: How does your service stand out in the FinTech sector?
Reinis: Finfra stands out due to its specialization in financial services tailored specifically to the Indonesian market. We take pride in understanding the unique needs of our customers and providing solutions that resonate with them. We prioritize operational excellence, ensuring efficient and reliable user experiences. Our commitment to regulatory compliance and a data-driven approach enables our clients to make informed lending decisions and manage risks effectively. We make sure we follow all the rules to protect our customers and uphold responsible lending practices.
Edward: How extensive is the reach of your services so far?
Reinis: To date, we have eight live platforms utilizing our services, with a strong sales pipeline featuring over a thousand qualified leads and dozens of active conversations with potential partners who are planning to launch their platforms within 12 months. We’re also looking forward to launching six new partnerships by the end of this year.
Edward: What are your current primary projects or initiatives?
Reinis: Our focus is on launching specific partner platforms and enhancing our partner and lender portals for easier integration and more efficient portfolio management.
Edward: What trends or challenges are emerging in your industry as 2023 draws to a close?
Reinis: A significant trend is the growing interest from international lenders in supporting agriculture lending. We’re developing a solution to provide competitive ESG funding at scale in this sector, which we believe will have a considerable impact on the economy.
Edward: Are there specific industries or groups you’re targeting for collaboration?
Reinis: We are particularly interested in partnering with AgriTech platforms that connect us with various members of the agriculture supply chain. Additionally, we’re looking to collaborate with digital platforms in Indonesia that cater to SMEs in need of credit.
Edward: How do partnerships contribute to Finfra’s growth?
Reinis: Partnerships are vital for our journey. A notable recent partnership is with Xendit, where we will introduce a Revenue Based Financing (RBF) product for e-commerce businesses. We’re actively working on several other partnerships and look forward to making more announcements soon.
Edward: What are Finfra’s main objectives for the upcoming year?
Reinis: Our primary goal is to scale our operations in Indonesia. While we plan for regional expansion in 2025, our immediate focus remains on maximizing the opportunities in embedded lending within Indonesia.
Edward: How can interested parties contact you for partnerships?
Reinis: For partnership inquiries, please contact myself, Reinis Simanovskis, at reinis@finfra.io, or Markus Prommik at markus@finfra.io. You can also find us on LinkedIn.
QIDS Venture Partners is dedicated to supporting and catalysing the developments in FinTech by sharing with our audience FinTech trends and interesting FinTech business ideas. You may forward this article to other investors who are interested in FinTech as well. If you need more information or would like to arrange a meeting with us, please feel free to contact our Managing Partner Edward Shen via LinkedIn or email.
