OP Finnfund Global Impact Fund I, the first global emerging markets impact fund in Finland, has invested US$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 Indonesia.

Through this investment, the fund aims to foster the digitalization and growth of Indonesian micro, small, and medium-sized enterprises (MSMEs), particularly in the fast-moving consumer goods sector (FMCG).

Currently, AwanTunai has over 80,000 active MSMEs on its platform. The company is looking to further expand its geographical footprint in Indonesia as well as its supplier and merchant reach.

The company seeks to provide affordable financing and services for the millions of underserved micro businesses that employ 90% of the country’s workforce.

“To date we have disbursed over US$1.5 billion in loans and we are on track to reach US$2.5 billion in annualized disbursements by the end of the year,” says AwanTunai chief financial officer Shilpa Gautam. “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.”

Kuutti Kilpeläinen, senior investment manager and head of digital infrastructure and solutions portfolio at Finnfund, adds: “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 [MSMEs] and also promote gender equality as small retailers, often women, have been underserved.”

OP Finnfund Global Impact Fund I has raised a total of €135 million (US$146.55 million). OP Asset Management, part of OP Financial Group, one of the largest banking groups in Finland, acts as portfolio manager while OP Fund Management Company acts as an alternative investment fund manager for the fund. Finnfund, a Finnish development financier and impact investor, is an adviser and anchor investor in the fund. 

Photo credit: AwanTunai