OP Finnfund Global Impact Fund I invests in AwanTunai to foster the digitalisation and growth of the MSMEs in Indonesia
OP Finnfund Global Impact Fund I, the first Finnish global emerging markets impact fund has invested USD 5 million in equity in AwanTunai, an Indonesian fintech company. AwanTunai offers affordable inventory purchase financing, integrated online ordering, and inventory management solutions to merchants and wholesalers across the country.
Through this investment, OP Finnfund Global Impact Fund I aims to foster the digitalisation and growth of Indonesian Micro, Small, and Medium-sized Enterprises (MSMEs), operating particularly in the fast-moving consumer goods sector (FMCG), that have often been underserved. With AwanTunai’s solution, the MSMEs can grow their business, which can, eventually, increase the accessibility of goods also for end clients.
Currently, AwanTunai has over 80,000 active MSMEs on its platform. The company is looking to further expand its geographical footprint in Indonesia and to increase its supplier and merchant outreach. AwanTunai’s vision is to provide affordable financing and services for the millions of underserved micro businesses that employ 90% of Indonesia’s workforce.
OP Finnfund Global Impact Fund I’s investment is part of a funding round that included commitments from several impact investors and development financiers.
Shilpa Gautam, Chief Financial Officer of AwanTunai, said: “This investment by OP Finnfund Global Impact Fund I, Norfund and MUIP is a significant milestone for us, and this partnership unlocks opportunities that will enable long term growth. AwanTunai operates across multiple layers of traditional FCMG supply chain and finances segments of the SME sector that are underserved or unbanked in Indonesia. To date we have disbursed over USD 1.5 billion in loans and we are on track to reach USD 2.5 billion in annualised disbursements by the end of the year. We are currently EBITDA positive and targeting positive profit after tax by the end of the year. With the support of our investors, we aim to be the leading provider of embedded financing solutions in the FMCG supply chain in Indonesia.”
Tuomas Virtala, Head of Asset Management at OP Corporate Bank, said: “Fostering the digitalisation in Indonesia and supporting the growth and development of the Indonesian MSMEs fits well with the investment strategy of OP Finnfund Global Impact Fund I. We are glad to support the expansion and work of AwanTunai.”
Kuutti Kilpeläinen, Senior Investment Manager, Head of Digital Infrastructure and Solutions portfolio at Finnfund, said: “OP Finnfund Global Impact Fund I is excited to support AwanTunai’s growth in Indonesia where the FMCG sector has a major working capital issue that traditional financial institutions can’t solve. With this investment we aim to increase digital and financial inclusion of micro, small, and medium-sized enterprises and also promote gender equality as small retailers, often women, have been underserved.”
Media enquiries:
viestinta@op.fi, tel. +358 10 252 8719
Kirsi Pere, Communications Manager, Finnfund, kirsi.pere@finnfund.fi, tel. +358 40 620 9767
Other enquiries:
Kuutti Kilpeläinen, Senior Investment Manager, Head of Digital Infrastructure and Solutions portfolio, Finnfund, kuutti.kilpelainen@finnfund.fi, tel. +358 44 013 1291
OP Finnfund Global Impact Fund I
OP Finnfund Global Impact Fund I is the first global emerging markets impact fund in Finland. The fund targets significant positive impacts in addition to financial return. The fund raised a total of EUR 135 million. OP Asset Management Ltd, part of OP Financial Group, one of the largest banking groups in Finland, acts as a portfolio manager for the fund and OP Fund Management Company Ltd acts as an alternative investment fund manager of the fund. Finnfund, a Finnish development financier and impact investor acts as an advisor and anchor investor in the fund.
