Awan tunai
Awan tunai
Providing affordable working capital financing and low-cost logistics for Indonesia's micro-SMEs by digitizing their offline transaction data in the traditional supply chain.
BCTA MEMBERSHIP STATUS
Active
SECTOR
Financial Services
HEADQUARTERS
Indonesia
REGION OF INITIATIVE
Asia & Pacific
SDG CONTRIBUTION
The Impact Goal
Awan Tunai, joined Business Call to Action in December 2020 and made a commitment to build a digitized supplier network covering 2,500 wholesalers by supporting micro-enterprises and to disburse USD 1 billion of affordable financing for 200,000 micro-SMEs by 2023.
The Market Gap
Indonesia’s supply chain has been experiencing a chronic shortage of affordable working capital along with numerous segments. In such a situation, working capital financing can have a significant impact upstream and downstream along the supply chain thus resulting in an increase in the income of not only their low-income micro merchant borrowers and wholesaler and supplier partners, but their stakeholders as well.
The Business Solution
Awan Tunai digitizes offline transaction data from traditional wholesalers and uses that data to underwrite unbanked micro-SMEs at a low cost. The company has built a digital distribution for thousands of micro-retail merchants who now have access to working capital. It also issues mobile-based consumer credit through partnerships with producers and distributors, thus, serving more than 100 million Indonesians who can access banking services.
Awan Tunai’s financing operates without the need for low-income borrowers to have a bank account as it does not disburse cash to the borrower, but rather, disburse the loan proceeds to the supplier the borrower micro merchant has purchased inventory from. Through this model, AwanTunai provides a holistic financing solution for micro-merchants in the Indonesian market.