Indonesian P2P lending startup Amartha has acquired a 100% stake in PT Bosowa Multi Finance, a leasing company owned by local conglomerate Bosowa Group, according an announcement.
The acquisition was done through Amartha’s holding company, PT Amartha Nusantara Raya (ANR), which oversees all of Amartha’s business operations, including its P2P lending platform PT Amartha Mikro Fintek and credit scoring Ascore. ANR acquired the stakes from previous shareholders PT SAM Global Kapital and PT Bosowa Asuransi.
Andi Taufan Garuda Putra, founder and CEO of Amartha, told the media that the acquisition of PT Bosowa Multi Finance is part of the company’s strategy to expand its business coverage while maintaining a strong focus on customer service.
He emphasised the importance of building products that are relevant to the needs of both customers and partners, supported by diversifying business licences to serve various market segments.
However, despite aspirations to broaden its product and licence portfolio, Amartha remains firmly committed to its core focus on the productive segment, which aligns with its mission to support this economic sector, he said.
“Our focus remains on the productive segment. The majority of our revenue and business comes from this sector. This segment still offers vast opportunities, and we will continue to concentrate on this economic sector before considering expansion,” Putra said.
Bosowa Finance, founded in 1994, offers three financing products: investment financing, working capital financing, and multipurpose financing.
According to its financial report last year, Bosowa Finance’s assets stood at 107 billion rupiah, total liabilities at 16.66 billion rupiah, and equity of 90.22 billion rupiah.
OJK regulations pose a challenge
According to OJK regulations, P2P lenders must have a minimum equity capital of 100 billion rupiah. These firms were initially supposed to comply with the regulations by 2019 but the deadline has been relaxed multiple times. As of September 2024, six companies have yet to meet this requirement.
OJK revealed that eight leasing companies are in the process of being acquired by both foreign and local investors. Two of these companies are being acquired by foreign investors from South Korea, Hong Kong, and Japan, while four others have already been acquired.
“These acquisitions are expected to enhance the companies’ financing capacity and expansion, making them more competitive in meeting market demands, protecting consumers, and introducing new products,” said Agusman, OJK’s executive head of supervision for financing institutions, venture capital companies, microfinance institutions, and other financial institutions, during a press briefing on Nov 6.
