Indonesia’s mom-and-pop-store focussed Warung Pintar Group has entered into a strategic partnership with fintech firm CICIL to develop a BNPL product, while HIJUP, an e-commerce platform for traditional muslim clothing, has launched a $6.92 million growth fund.
Warung Pintar partners CICIL for BNPL
Indonesia’s Warung Pintar Group, a B2B ecommerce platform focussed on warungs, or mom-and-pop stores, has entered into a strategic partnership with the fintech firm CICIL to develop a buy-now-pay-later (BNPL) product called “Bon Pintar”.
Stall owners, after a verification, can purchase stocks and pay 14 days later using the service. With Bon Pintar, warungs can increase their stock without having to seek credit from external parties. Stall owners can start a credit record and improve their financial literacy.
The company, on the other hand, hopes that this can be a gateway to introduce more financial products for small businesses.
“Within a few weeks of being launched, thousands of stall owners have reaped the benefits of Bon Pintar,” Agung Bezharie, CEO of Warung Pintar Group said in a statement.
Agung added that each stall will have a different capital size, based on the shopping history data on the Warung Pintar app. The data is used as the basis for credit scoring that was developed together with CICIL.
The company targets to reach 150,000 active stall owners in its ecosystem to use the Bon Pintar service.
Data from Indonesia’s Central Statistics Agency in 2020 showed that 69.02% of micro-business players in Indonesia require an injection of business capital aid.
HIJUP launches $6.92m growth fund
Indonesian e-commerce platform for traditional muslim clothing HIJUP has launched the Rp100 billion ($6.92 million) Hijup Growth Fund. The fund will target entrepreneurs in the muslim fashion industry.
Founder and CEO of HIJUP, Diajeng Lestari, expects that there will be more quality products from local Muslim fashion brands through the Hijup Growth Fund. “We realise Hijup can sustain and become bigger due to support from entrepreneurs,” said Lestari.
The programme offers three options for financing. First, is the “Special Collection” scheme for brands that want to create a product collection in collaboration with HIJUP, with financing up to Rp5 billion.
Second is “Modal Kerja, which means Working Capital in English. It offers Rp2 billion for increasing capacity.
The third option is “Corporate Investment” — this makes HIJUP the shareholder of the investee brand with financing up to Rp20 billion.
Hijup has so far signed financing agreements with two merchants with total financing of Rp22 billion ($1.5 million).
Founded in 2011 by Lestari, HIJUP last raised a seed round in 2017. It is backed by investors including Emtek Group, Indogen Capital, Pegasus Tech Ventures, 500 Startups, Skystar Capital, and Google Launchpad Accelerator.