Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The KFund.id site is under maintenance.
The sign is gone. Hopefully loading site today. They just opened 9am Jakarta time.
From the 14C:
"The Board of Directors decided that it is in the best interests of the Company and its stockholders to extend the time to determine the ratio and timing of the Reverse Split in order to: (i) evaluate the success of its capital raising efforts; and (ii) the growth of its operations during the period."
So I don't know if this means they want to wait until after the 1st quarter to see how KFUND is doing (growing), and also to see if any investors come along in the 1st quarter.
I went through a 1 for 8 reverse split with Contravir in 2018. They announced it on 5-24, and did the split on 5-29. So at least there was some time to prepare for it. Make sure of your broker reorganization fee.
Proactive measure. If the share price moves towards a $.01, it will happen. If it goes up, then it won't.
Look at the notes. Penalties loom when price goes below $.01
Thank you to NITE. Sat there all day with 313,000 to sell, and didn't budge off $.067
Looking good. Nice volume again. It looks like if we got another 270,000 shares we could got back to $.04
Vietnam and Thailand, How long until the original plan comes together?
Don't know how many people remember this but the whole point of acquiring PT Kinerja Indonesia and their data centers was to position the company to launch its services into Vietnam and Thailand.
What better time than now to get the registration process going in other countries. Set it up for late 2020. We now officially have a service to offer.
Revenue, revenue, revenue.
S-728/NB213./2019
Our registration number. Congrats KFUND! Took a little longer than you thought, but we're in the lending business.
Great end of year gift to all of us still holding.
Best year yet is coming in 2020!
There were changes in 20 fintechs that received business licenses including, SAMIR, Danon, MIKROKAPITAL.ID, Optima, ArgaPro, P2P Lending Partners, BBX FINTECH, 360 credit, Cankul, Help me, Borrow KAN, PiNBee, KFUND, Puhul Lending, Wells.id, Indosaku, Jayindo, IVOJI, Pinjamindo, Coin Box.
Interesting, you can see the translation "business license". Thats what started the early confusion about registration - licensed.
Here it is! #157 registration from OJK!
https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Pages/Penyelenggara-Fintech-Terdaftar-dan-Berizin-di-OJK-per-20-Desember-2019.aspx
My company for KFUND to model itself after (then surpass) is Julo.
After looking at just about every company on the current list, Julo really strikes me as what KFUND can be. There are a broad range of companies doing different types of p2p and MSME funding. Some like Tanifund only want to deal with agricultural loans, Shariah lenders have their own guidelines that don't apply to the whole population. Others when you look at their websites (Finplus), it really leaves you scratching your head (it's 1 page, with no link to their app). It gives me great hope when you see Prosperitree.co.id (another 1 page beauty) has 100,000+ installs, yet designed a website where there are pictures covering up text everywhere.
All that being said:
-Julo was founded at the end of 2016.
-Got seed money from Skystar Capital at the end of July 2017 (undisclosed amount, but looking at Skystar's site and what they typically give a start-up, probably $850,000 to $1.5 mil). They said they would use this money for product development, machine learning investment, team development, and distribution.
-Got Series A funding of $5 mil on 5-21-18. They said they would use this money to grow it's team, and accelerate the growth of it's loan portfolio.
-Got registered with the OJK on 7-31-18.
-Got Series A2 funding on 9-18-19 of $10 mil. Said it would use this money to hire new employees, improve its credit scoring system, and grow it's business in country.
They are now processing more than 10,000 loans a month, and have disbursed more than $50 mil in loans.
Their product is simple, has 3 offerings that boil down to short-term(.33% interest daily), monthly(1.5% to 4% mo. interest), and longer term(you pledge your house, car, or motorcycle as collateral).
Their average loan size is $300.
There isn't many publicized numbers from second half 2017 when they started. But I'm guessing if they got $5 mil in funding in May 2018, they were doing ok.
They have a 4 star rating in the Play Store, with over 1 million downloads, and 128,000 reviews. This is amongst the best I've seen (4 stars) with that many reviews. To compare, Modalku is 3 stars, Koinworks is 2.3 stars (Yikes!), and Ammana is 2.9 stars.
They keep up with their social media. Have 11,500 followers on Instagram, and 1,475 on Twitter. Both have regular posts and respond to their customers.
They are considered a hybrid p2p lender. Looks like that's what KFUND is as well. Goes to show, once again, how quickly things can happen with a good product that's ran correctly. Julo got funding within 6-7 months of starting. Now that p2p lending, and its returns are understood, maybe KFUND won't even have to wait that long.
Cant wait to see the app, and the website. I hope they post numbers on loans disbursed, number of loans, and all the other details on the site like some of the other companies do. Help us get an idea month to month how they're doing.
Go KFUND. Have a big 2020.
A closer look into the last PR:
Looking at the type of p2p KFUND will be considered. I couldn't be happier that they're going to be what looks like an institutional backed hybrid model. I think that has the most to offer.
From PR: "P2P lending connects individual, institutional investors as well as the Company's subsidiary itself with other individuals or small businesses that need capital."
Also : "The more significant revenue opportunity comes from acting as a principal." and "The Company has arranged access to non-equity lending sources for the US parent, KPAY to act as a principal using its own platform to lend to these MSMEs as well as individuals who have verified employment."
Here is a good article on the different types of p2p models, and why KFUND looks to fall in the hybrid category: https://www.convergencevc.com/resource/understanding-lending-models-indonesian-fintech-startups/
Here is a good article on 5 non-equity ways to get funding : https://gusto.com/blog/business-finance/5-non-equity-ways-to-get-business-funding
Hard to say yet what their non-equity sources are. Could be small business loans that pass through KFUND from an institution. Could be invoice financing. I have no idea. The crowdfunded p2p loans combined with them acting as a principal on others is a great way to do it. It opens you up to more of the country. It serves the business well also if you can choose to make more money one way vs the other. If a loan comes through that the company can make more money on itself instead of letting it be crowd funded, then they can do it.
My next post is going to be about the hybrid company KFUND should model itself after.
1898 illegal p2p closed down since 2018. Thats alot of customers that will now be using registered companies.
From OJK Twitter this morning:
Sejak 2018-2019, SWI telah menindak 1.898 entitas P2P lending ilegal.#OJK#OJKIndonesia#SatgasWaspadaInvestasi#Polres#PolresJakut#FintechP2PLending#AntiPinjolIlegal#InfoKeuangan#Keuangan
— OJK Indonesia (@ojkindonesia) December 30, 2019
My guess at FRS Lending.
Going back to earlier this year, the name FRS Lending, Inc. appeared in the 10Q as a company registered in Delaware that KPAY had acquired with Series D stock for $2,086,000. I posted on here wanting to know who the hell they were and why we paid that much money for them. I looked into "financial recovery systems" and a few other things. Got no where.
From the 10Q: "On January 15, 2019, the 200,000 Series D Preferred Shares (Note 8) were issued to the shareholders of FRS Lending, Inc., a Delaware corporation (“FRS”) in consideration for the acquisition by the Company of 100% of the capital stock of FRS, which shall operate on behalf of and provide the Company with services related to the Company’s lending and micro-lending activities and related lending services in the U.S., Indonesia and internationally, which is a newly developing division that the Corporation is planning to devote resources to grow its operations. The fair value of the consideration will be determined based on 10% of the fully diluted common shares of the Company as of the date of issuance."
Then in the last PR, there was this: "The Company already has stringent due diligence protocols as well as KYC software to limit defaults."
KYC = Know Your Customer
Today I tried something new. Googling "FRS Fintech" brought me to this company : https://www.frslabs.com/
Now by no means is that the company KPAY acquired. But now it makes sense. I think they bought a Facial Recognition Software or "Biometric" company. Maybe Edwin didn't want to tip his hand as to what would be in the app. It's being used by some of the p2p companies for their KYC already.
https://www.asliri.id/p2p-biometric-verification/
You can dig around on that site to get a feel for the way lending companies are using it.
Time will tell if I'm right.
LOL. Here are some stats on the Indian p2p market.
https://www.finextra.com/blogposting/17255/the-indian-p2p-market-is-expected-to-grow-to-usd-10-billion-by-2025
https://www.investindia.gov.in/team-india-blogs/p2p-lending
Yeah. Really oversaturated in India. 30 companies for $10 billion dollar market. Where do you come up with your stories?
India and Indonesia saw what happened in China, and got ahead of the game by regulating the p2p markets by creating licensing systems.
Indonesian market has 164 companies, and that number includes Sharia lenders, for 260,000,000 people. And you think its over saturated? In China, they lost count somewhere after 5,500 lenders. Some articles say it pushed over 7,000.
You have to do better than that.
Why it's such a big deal that OJK is getting rid of the illegals? You already see the size of the market for p2p lending in Indonesia. How about the number of people using the black market that are going to be forced to use the legally registered companies? Here is just one of the recent busts: (article from today)
https://www.cnbcindonesia.com/tech/20191227143541-37-126053/kucing-kucingan-dengan-ojk-fintech-ilegal-bikin-15-aplikasi
PT Barracuda was actually stupid enough to go to the AFPI seminars and training back in April, then didn't finish the process and started making apps for illegal p2p loans. Well congrats! They got raided by the police today.
Here are the numbers:
Rp 75,000,000,000 in loans, collected Rp 91,000,000,000 in return on those loans. ($6,520,150.00)
Collected Rp 25,000,000,000 in admin fees. ($1,791,250.00)
All that since some time in April. Amazing.
Another mention of the new registered companies:
https://keuangan.kontan.co.id/news/afpi-akui-fintech-ilegal-barracuda-fintech-pernah-ikuti-training-yang-mereka-gelar
"At present, AFPI has 164 legal peer to peer lending members. to become registered with the OJK, through a fairly long process must follow various rules such as in the Association there is a code of conduct that must be done by fintech who is registered with the OJK."
Maximum bill on loans set to 100% of total debt.
The AFPI today set a new rule so that the maximum interest, fees, and penalties can not exceed 100% of the total loan. If you borrow Rp 5,000,000 the maximum you would repay is Rp 10,000,000.
https://megapolitan.kompas.com/read/2019/12/27/22024511/afpi-maksimum-tagihan-di-pinjaman-online-legal-100-persen-dari-total
Also mentioned in the article "These rules are standard and are applied by the 164 legal fintechs registered with OJK".
$30.63 billion by 2024
https://asianbankingandfinance.net/financial-technology/news/indonesian-p2p-lenders-disburse-3063b-in-loans-2024
lets say the OJK caps the lenders at 200 (guessing)
30,630,000,000 / 200 = $153,150,000 per company in loans
Lets say they cap it at 500 (guessing)
30,630,000,000 / 500 = $61,260,000 per company in loans
Lets say they cap it at 1000 (guessing)
30,630,000,000 / 1000 = $30,630,000 per company in loans
This year the list went from 88 to 164. So even if the OJK ramps up it's approval process what can you expect? 10 new registrations a month? Keep in mind they have to oversee these companies. I don't think they want so many registrations at once. Also has to do with the cap. They learned what a disaster China's p2p turned out to be unregulated.
All we need is a piece of the growing pie.
The P2P starts in early January. Funding isn't a necessity. The loan money comes from investors (the lenders). KFUND facilitates the loans, makes money off transactions and interest. They can begin the p2p with $80,000 of paid in capital to OJK.
Whats not to like. Whats the overhead for the business? Up until now, we had KMall and KPay. This is what I've been waiting for. A regulated business, with a soon to be cap on the number of companies.
Were all so worried about the "awful" 3.5 in notes. All you have to have is an ability to read. I challenge anyone here to look at the list of registered lenders, take 10 of them and go to their websites and read. It's not even hard to do. Most have it right on their homepage, the amount of loans disbursed.
Funding would be great. All it would mean is they could accelerate marketing. So instead of having a little patience, everyone who demands success overnight would get their wish. Or we watch the number of loans climb month after month, like every other company in the business, and see who wants to invest then.
Also, show me one company on the list of registered companies who has went out of business. I'll wait.
$10,028,200,000 - $10,744,500,000 usd. Thats the updated projection for p2p loans disbursed in 2020. As of October this year, lenders have disbursed $4,870,840,000 usd. The AFPI's new projection for 2020 see's a 200% increase quite easily.
https://investor.id/finance/2020-akumulasi-pembiayaan-fintech-p2p-lending-diproyeksi-capai-rp-150-triliun
So $10,744,500,000.00 / 164 = $65,490,853.66 per lender
Is that good?
Whats a P2P lending license worth when the government steps in and caps the number of companies aloud to have a license?
You couldn't have written this any better.
It gets even better! The OJK's Director of Licensing and Supervision Arrangement of Fintech, Hendrikus Passagi is in talks with the AFPI to limit the number of P2P lenders in Indonesia.
Got in just in time!
https://pontas.id/2019/12/20/ojk-bakal-batasi-jumlah-fintech-p2p-lending-di-tanah-air/
Unbelievable!
Direct link to AFPI instagram :
https://www.instagram.com/explore/tags/afpi/top/
Kuseryansyah Kus Executive Director at Indonesian Fintech Lending Association (AFPI)
Thank you. Must be tough to be delusional and think this is all a mirage.
Yep, to the right of red shirt
From Hengky Surya's LinkedIn
https://id.linkedin.com/in/hengky-surya-680b34188
It's happening! AFPI Instagram today. 20 new companies registered, bringing the total to 164. Nice! Congrats KFUND!
https://www.instagram.com/p/B6SmXn4FRnz/
They facilitate loans and make money off that. People fund the loans as investors, and get paid to do it. Kinerjapay doesnt have to have anything except $88,000 of paid in capital to the OJK.
Maybe you dont know what peer to peer means. Look it up.
Capital to lend? You know what peer to peer means?
The fact of the matter is were in the lending business now.
In a market that is expanding rapidly. With the OJK rounding up all the illegal lenders. What's the overhead for this type of business? It's a cash printing machine.
Do I need to show you the data from everyone of these companies that is registered. Do yourself a favor, and pick 10 of them that got registered in late 2018, go to their homepage of their website and look at the numbers they post. If you think this is a world of make believe, think again. You can't assume a company like Cairin has funding coming out their ass, yet look at what they've done.
How about Ukuindo. Who the hell are they? I'll let you go check them out. It's right there on their home page. Got registered on 2-1-19. $11,320,751.76 in loans. 10 months. The company wasn't even established until November 12th 2018.
Start doing some research.
Here's why Edwin's projections are achievable:
Let's look at the two sides of the new business -
The personal loan side & the MSME side
The personal side : He states in the PR that these loans will be $200-$300, and last around 30-90 days. With an agency fee of 8%-10%. He thinks they can do 25,000 of these a month. So let's take the low side $200 x 8% = $16 agency fee per loan. 25,000 x $16 = $400,000 a month.
Now the thing I don't understand is he never mentions daily interest on these loans. Other competitors are charging daily interest from 0.2%-0.8%. Then most charge the admin fee of 1%-2% on the loan value. Maybe he's rolling it all into the 8%-10% figure.
The MSME side : He states these loans will be from $1000-$5000 and last from 30-90 days. Same agency fee. He projects 5000 of these a month. Low end $1000 x 8% = $80 per loan agency fee. 5000 loans x $80 = $400,000 per month.
Akseleran started its p2p business on 10-2-17. In the first 9 months (until 6-30-18) they did $4.6 mil in loans. These were all MSE loans. They did not start their personal loan business until January this year. 4,600,000 / 9 months = $511,000 a month in loans. At this point Akseleran had only $1.85 mil in funding from Bintraco Dharma's parent company, and some angel investors. They went after warehouses and outlets to establish a customer base. Doing mostly invoice financing.
The number of MSME's that don't have access to legitimate financing is incredible. Using the numbers given, somewhere above 47 million. Once you get the business owner on board, they tend to reuse your product. Akseleran says their repeat use is at 75%.
Even a company like Cairin that just got registered on 4-8-19 has on their website total loans disbursed $12,347,171.79 usd. With 95,508 borrower accounts. That's over $1.7 mil a month in loans.
If you've spent as much time as I have looking at all these companies, you would see what good things are coming. I can't wait to see how the app and website come out.
Best of luck KFUND. 2020 will be great.
It's like you broke up with this stock, but all you can do is talk about it.
LOL. So you want them to give you results from a business that hasn't started yet?
"The Company estimates an agency fee of 8-10%" from the PR
"Where KFUND makes it's money:
-Charge the borrower a commission on the loan 2% to 7% of the total loan value.
-Charge the lender 1% of the principal amount plus interest (for monthly repayments), or 5% of interest (for lump sum repayments).
-Charge lenders 5000 Rupiah ($.36) withdrawal fee when they take funds out of their account. " from my post last week
Pretty good prediction, they were at the high end of what I was expecting.
7% to the borrower + 1% to the lender
OJK releases updated list for December. Only problem is they dated it for the 13th. No new registered companies added yet, only companies that moved on from their permit to license.
Same thing theyve done in the past. Expect another updated list within the next couple weeks with added registered companies.
You want to see something crazy?
The Annual Rate (APR) including all commissions is 180% per year.
Full address: Menara Dea, Tower 2, Lantai 2, Suite 202, Mega Kuningan Area, Jl Mega Kuningan Barat Kav E4.3 No 1-2. Kuningan Timur, Setiabudi, South Jakarta, DKI Jakarta 12950
MAIN INFORMATION ON CASH LOAN PRODUCTS THAT ARE IN Danafix
Loan range: 500,000 - 15,000,000
Loan period: 91 days - 180 days
Loan rate: 15% month
Coverage area: covers all regions of Indonesia
If you want to know how the interest on loan products is calculated, the following is an example of loan calculation: If you borrow 15% of the loan interest for 3 months to borrow IDR 500,000, then you must pay IDR 500,000 * (1 + 15% * 3) = IDR 727,000
Thats from DanaFix's website
How the p2p will generate money
Rundown of how it works with most of the companies in Indonesia.
The Investor side :
-Open an account on the KFUND app.
-Deposit money into your account (probably a minimum of $7.50 like most apps).
-Pick your risk tolerance. This is where the app's credit scoring system comes into play. If you want more return for your money, choose riskier loans.
-Pick the length of time (term of loan).
-A lot of apps have an auto-reinvest feature, where the app will reinvest funds in your account into new loans.
-Typical returns for investors will range from 18% to 30%.
The borrower side : (Simple)
-Open an account on the KFUND app.
-Verify your employment, and your business.
-Set up your credit profile.
-Enter the amount of loan and the term.
-Pay your monthly payments, or lump sum into your account.
Where KFUND makes it's money:
-Charge the borrower a commission on the loan 2% to 7% of the total loan value.
-Charge the lender 1% of the principal amount plus interest (for monthly repayments), or 5% of interest (for lump sum repayments).
-Charge lenders 5000 Rupiah ($.36) withdrawal fee when they take funds out of their account.
You can see why this is so attractive to people on both sides. For the lenders, getting a return of even 15% after fees is great. Even an average person can throw part of their paycheck into KFUND every week and invest in the highest rated loans and make good money. In the borrowers case, you may own a business that needs money for an inventory purchase short-term. If you don't have assets to pledge to the bank for collateral, or don't even have a bank near by, or don't trust the banks (all likely cases in Indonesia), this is a great solution done right through your phone.
Capital needed is more about scaling up KFUND. Getting more borrowers and investors using your app. The OJK requires only $75,100 paid up capital when you get registered, and $188,000 when you get your license.
The OJK is clearing out all the garbage. Since last year the number of illegal p2p shut down has grown to over 1,773. The companies that are registered-licensed get all that business.
It's the OJK way of overseeing your operations. Once you prove yourself to them, you get the full license, and they more or less get out of your hair.
Every one of the 13 companies with the exception of Danamas (the first license) has spent 1-2 years under OJK supervision, then got their license if they did things right.