Koku is a Singaporean based fintech startup. The startup has announced its plans to expand into the Indonesia market. It has acquired $ 2 million from pre-series A funding round, previously in early 2019. The round as led by Decent Capital, an investment firm started by Tencent Co-founder Jason Zeng. The investment is used for Koku’s expansion to Indonesia.
Koku works with Non-Bank Financial Intermediaries (NBFIs). They are various groups of a financial institution other than banks. Koku aims to build foreign exchange (FX) technology solutions. The startup is exploring the initial project with NBFIs in Indonesia.
Indonesia is an increasingly promising market for the startup. Indonesia’s high migrant population with increasing inbound and outbound remittance may help the startup to get a wider customer. The startup sees immense potential in Indonesia with its technology. Indonesia will grow the startup’s remittance industry. On the other hand, Koku will help Indonesia to grow its e-payments and money transfer capabilities.
According to a report from the World Bank, Indonesia has experienced tremendous improvement and growth. The report predicts that the remittance industry contributes a lot to the growth.
In 2018, the country acquired a double-digit growth of 24.7%. Besides, in 2017, Indonesia recorded transaction value is $88.9 billion from migrant workers. Therefore, Indonesia is one of the top remittance recipients in Asia.
Koku will move to collaborate with partners with expertise in the local market. Their potential partners will range from e-wallet, micro-lending, and payment companies. Besides, the startup will look for cooperation with local remittance and money exchange businesses.
Koku will integrate its technology into the existing operation of these NBFIs. Its technology will boost its partners’ speed to go to the market. Moreover, Koku’s technology will help these NBFIs to erase disruption to their businesses.
Moreover, Koku will also explore opportunities to work with local supermarkets and convenience stores. It plans to act as points of access to financial access. Therefore, it will, in the end, help the unbanked community to move closer to financial inclusion.