Danabijak

Embedded finance in Indonesia is rapidly transforming the way financial services are integrated into everyday platforms, enabling seamless access to payments, lending, and insurance within non-financial applications. Despite its growth, many Indonesians still face challenges in accessing fair and transparent financial solutions. Danabijak is changing the landscape by offering user-friendly, responsible, and inclusive financial products that empower businesses with greater financial control and opportunities.

Danabijak, a peer-to-peer lending platform in Indonesia, is transforming the lending landscape for underserved small and medium enterprises (SMEs). While Indonesia’s banking system is well-established, it often overlooks SMEs and individuals due to complex application processes and high rejection rates. Danabijak bridges this gap, leveraging data from transactional platforms like accounting software and POS systems to simplify and accelerate loan approvals, reducing wait times significantly.

By partnering with non-financial companies to develop white-label financial products, Danabijak opens doors for SMEs to access financing they might otherwise never receive. Their streamlined, data-driven approach enables borrowers to apply for and receive loans with unprecedented ease.

explains co-founder and CPO Reinis Simanovskis.

Through these innovative partnerships and processes, Danabijak has established itself as a leader in Indonesia’s embedded lending market.

Danabijak’s roots trace back to the eight-year journey of co-founders Reinis Simanovskis and Markus Prommik in Indonesia. Recognizing the systemic gaps in the local financial ecosystem, they set out to improve access to financing. Initially focused on consumer lending, the duo pivoted in 2022, launching Finfra to drive Danabijak’s operations and pioneering embedded lending solutions.

This shift was inspired by both market conditions and demand from non-financial businesses seeking white-label lending products.

Reinis clarifies:

This insight came as non-financial businesses approached them for white-label lending solutions, prompting a full-scale transition to embedded lending.

Their journey so far is marked by significant milestones, including raising $1 million in 2023 and an additional $2.5 million in 2024 during their pre-Series A round. They currently operate 11 loan products in collaboration with multiple platforms. By integrating with POS systems and expanding their strategic alliances, they sre poised for exponential growth.

Reinis Simanovskis, CPO and Markus Prommik, President Director of Danabijak.

Danabijak’s model is centered around accessibility and efficiency. In contrast to traditional banking processes, which take weeks and rejection rates as high as 85%, they leverage transactional data from platforms like accounting or point-of-sale (POS) systems to offer quicker approvals and tailored repayment plans. Borrowers, such as SMEs using accounting or POS platforms, can share transactional data seamlessly to apply for loans.

says Reinis.

A standout upcoming feature developed by collaborating with South Africa’s Tyme Bank, involves revenue-linked repayment schedules for merchants. Borrowers can repay loans flexibly, aligned with their business performance.

he adds. This fresh approach not only supports SMEs during challenging times but also fosters trust and alignment between the platform and its users as it adapts to borrowers’ realitis. Such advancements in lending models demonstrate Danabijak’s commitment to reshaping access to finance in Indonesia.

Collaboration has been key to Danabijak’s success, notably with Infobip. The partnership originated as part of a Seedstars perk and evolved into a strategic relationship.

Reinis states.

From SMS notifications for loan disbursement and reminders to WhatsApp OTPs, the tools provided by Infobip have been instrumental in enhancing customer experience and operational efficiency. These integrations have streamlined loan servicing and borrower communication, enhancing efficiency and compliance in Indonesia’s stringent financial regulatory environment.

Beyond technical integration, the support from Infobip Startup Tribe has been invaluable.

he adds, emphasizing the mutual enthusiasm that underpins their collaboration.

With a recent pre-Series A funding of $2.5 million, the company plans to execute its robust sales pipeline and enhance its market share. Looking further ahead, Danabijak remains laser-focused on dominating the embedded lending space in Indonesia while preparing to expand into other Southeast Asian markets within the next few years.

Their innovative strategies and mission-driven ethos aim to reduce the region’s credit gap and uplift local economies. The team’s driving force is their tangible impact on borrowers’ lives, enabling businesses to grow and improve livelihoods

Danabijak exemplifies innovation and purpose, proving that financial inclusion can transform lives and businesses alike. And we’re proud to support them.