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Global Tech Firm Abakus Acquires IDX-Listed DEFI

twitter-logoPTI | October 18, 2018 | Updated 13:27 IST

(Eds: Disclaimer: The following press release comes to you under an arrangement with PR Newswire. PTI takes no editorial responsibility for the same.) Acquisition aligns with its hyper-localisation "Gotong Royong" fintech strategy and enables access to multi-finance licenses in Indonesia. JAKARTA, Indonesia, Oct. 18, 2018 /PRNewswire/ -- Global tech firm Abakus is pleased to announce that its regional headquarters Abakus (Asia Pacific) Pte Ltd has successfully entered into a share purchase agreement with PT Jesivindo Juvatama to acquire 5% of outstanding shares of PT Danasupra Erapacific Tbk (IDX: DEFI) for an undisclosed sum. The move comes off the back of its January 2017 joint venture with PT JAS Kapital and PT Kresna Usaha Kreatif to launch PT Digital Tunai Kita (TunaiKita) for Indonesian consumers and business owners. This acquisition is expected to provide Abakus with access to multi-finance licenses and ecosystem in Indonesia while increasing synergies between DEFI and TunaiKita's lending platform. DEFI began operations in 1995 and is a leasing, factoring and consumer financing company in Indonesia with a diversified portfolio spanning housing, automobiles, travel, machinery, and others. Earlier this year in March, DEFI had announced the acquisition of a minority stake in TunaiKita from JAS Kapital and Kresna Usaha Kreatif. By acquiring a direct stake in its local partner, Abakus also expects to increase the financial consolidation of its fast-growing subsidiary TunaiKita in the months and years ahead. TunaiKita has been registered with OJK as a fintech lending platform since 24 August 2017 and is currently undergoing qualification for its full fintech license. James Chan, CEO of Abakus Asia Pacific and TunaiKita, declared, "JAS Kapital, Kresna and more recently DEFI have been strategic local partners to us since we started TunaiKita in January 2017. I believe multi-finance companies can benefit from our real-time and end-to-end credit platform as they adopt advanced technology and play a more effective role in financial inclusion. I am excited to have the opportunity to work more closely with PT Kresna Graha Investama Tbk (KREN) and join in DEFI's growth plans as we unite our efforts and help the industry to better meet the credit needs of under-served consumers and business owners in Indonesia." Since commencing operations on 22 May 2017, TunaiKita has served more than 2.5 million customers in Indonesia across 159 cities and towns across all provinces in Indonesia. In 2018, TunaiKita had achieved an annualized loan disbursement run-rate in excess of Rp 1.25 trillion and expects to continue growing at 25 to 30% on a month-on-month basis. Odang Muchtar, President Director of DEFI, said, "Despite past adoption of technology, multi-finance in Indonesia has continued to depend on manpower-intensive operations to acquire and service customers, underwrite loan applications and collect outstanding loans. We have observed how TunaiKita achieves rapid growth while controlling credit risk and are eager to integrate our technology systems and credit, risk and compliance processes with TunaiKita. In so doing, DEFI will become more fintech-ready and can scale our business by partnering with other leading fintechs in Indonesia." With the rapid growth of fintech in Indonesia, Abakus, TunaiKita and DEFI are pleased to be heeding OJK's call for "gotong royong" online and demonstrate deeper collaboration between fintech companies and mainstream financial institutions. This transaction will allow Abakus, TunaiKita and DEFI to increase synergies and leverage upon their core strengths to create new innovation and transform financial services in Indonesia. About Abakus As the parent company of fintech unicorn Wecash, Abakus is a global company that aims to better serve consumers around the world through technology. It has over 1,200 employees spread across its subsidiaries in China, the United States, Brazil, Singapore, Indonesia, India, and Vietnam. Since its founding in November 2013, Abakus has acquired over 160 million users worldwide. By leveraging the power of artificial intelligence, big data, and mobile technology, Abakus connects financial institutions to half of the world's consumers. It has raised more than US$270 million in equity financing over four rounds, and counts top-tier investors such as IDG, SIG, China Merchants Group, Forebright Capital and Orix as its shareholders. For more information, see About DEFI PT Danasupra Erapacific Tbk (DEFI) began operating in 1995, and is engaged in providing financial services. Listed on the Indonesia Stock Exchange (IDX), under the "DEFI" ticker code, the Company's operations include leasing (provides financial services in the procurement of capital goods such as facilities and equipment production), factoring (providing financing services, which will help businesses to improve working capital) and consumer financing (financing consumer goods). The Company's operational performance is always based on efforts to improve financing distribution and expand its customer base through searching new leads and understanding of risks since underwriting and billing processes. As a result, Non Performing Financing (NPF) is maintained at 0%, the same as in previous years as it continues to put efforts in maintaining the asset quality and consistently executes the strategies over the years. About TunaiKita PT Digital Tunai Kita, or TunaiKita, was established in January 2017 as a subsidiary of Abakus Asia Pacific, with local partner Danasupra Erapacific (IDX:DEFI), an IDX-listed multi-finance company. TunaiKita combines Abakus' technology and know-how with the market knowledge and multi-finance license of DEFI to deliver innovative financial products in collaboration with institutional lenders to individual consumers and business owners in Indonesia. TunaiKita operates in Indonesia as an Arranger under the POJK77/2016 legislation framework as a registered lending platform. TunaiKita is the first Indonesian company to build and deploy an automated lending robot for institutional lenders to evaluate consumer creditworthiness, prevent fraud, and approve loan applications instantly while reducing NPL by up to 70%. For more information, see PWR PWR

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