Boost aims to empower 77.6% underserved MSMEs through simplified financing solutions.
JAKARTA, Indonesia, Aug. 2, 2023 /PRNewswire/ — Boost, a leading regional full spectrum fintech arm of Axiata, is proud to announce its unwavering dedication to bolstering the growth of Indonesia’s MSMEs. These enterprises, serving as the driving force behind the nation’s economy, often face financial underservice. Recognizing this pressing need, Boost is fully committed to transforming the sector by offering a comprehensive range of financial solutions, with a specific focus on productive P2P lending.
MSMEs hold a strong position in Indonesia, employing 60% of the workforce and contributing over 60% to the country’s GDP. However, many struggle to obtain financing for their businesses with 77.6% of MSMEs in Indonesia have yet to receive banking credit and only less than 35% are included in the digital economy ecosystem. Therefore, financial inclusion and digitalization as the industry’s key challenges have become more important than ever for Indonesia to overcome the hurdle. As a fintech company, Boost aims to accelerate this process by financially empowering the underserved MSMEs across the country.
Sheyantha Abeykoon, Group CEO of Boost said, “Since its inception, it is our purpose and mission to serve the underserved, by digitally transforming our merchants to be unstoppable in achieving their goals in our operating countries, including Indonesia. With the ever-evolving digital landscape, it is crucial for them to be able to get access to the right tools and solutions needed to embrace digitalisation. We hope to contribute to the efforts of simplifying financing solutions powered by AI and machine learning for the Indonesian market.”
Boost was founded in both Malaysia and Indonesia in 2017 with the aim to spur growth for MSMEs through financial services and merchant-focused solutions. In Indonesia, Boost offers two financing services through P2P lending, namely invoice financing and supply chain financing, where borrowers (Boost Merchants) can apply for up to IDR 2 billion in financing within 3 months. These services allow MSMEs to obtain financing for business activities, expand their stores, pay employees, and realize their entrepreneurial dreams.
Boost Merchants will also benefit from Boost Kedai, a digital platform designed to streamline supply chain processes for MSMEs in the digital economy era. Boost Kedai connects Boost Merchants with suppliers and offers convenient payment methods through Boost Tempo for cash flow management.
Stefanus Warsito, CEO of Boost Indonesia said, “At Boost, we always have been at the forefront of innovating our financing services to digitally empower businesses, especially amongst the underserved community. Currently, we are partnering with ecosystem players to see how we can transition our latest fintech lending model into value-added merchant solutions and products for MSMEs in Indonesia to grow without limits.”
“Over 40% of Boost’s customers in Malaysia and Indonesia have never received credit from other financial service providers before. We seek to reach more MSMEs across the country through our holistic fintech solutions that can help them be unstoppable in their business growth,” added Stefanus.
Boost possesses an excellent track record of serving the underserved at scale. As of 2023, the company has disbursed nearly IDR 9 trillion worth of loans in Malaysia and Indonesia since its inception, with over 40% or around IDR 3 trillion of this amount being disbursed in Indonesia alone.
Trust in the company continues to increase with 90% repeat rate on short-term micro-financing for Malaysia and Indonesia. To date, Boost has witnessed a year-on-year increase of over 40% growth in its loan book. With average monthly disbursements of IDR 208 billion, Boost solidifies its position as one of the top fintech players in Indonesia.
As a fintech leader, Boost continues to be a pioneer in the fintech space by reimagining technology to simplify the lives of both its users and merchants and bringing them into the digital economy. This is through ensuring Boost’s offerings solves pain points, especially for businesses through merchant solutions and digital financial tools.