Private lender CIMB Niaga has teamed up with Singapore-based venture lender Genesis Alternative Venture to provide loans for startup. For the first stage, both companies prepare Rp 300 billion of fund to disburse. The collaboration is the first loan financing scheme for startup in Indonesia that combines conventional banking and venture lender.
CIMB Niaga President Director Tigor M. Siahaan says the loan aims to help up-and-coming startups so they can scale up their businesses. The lender is targeting startups in fashion and retail, manufacturing, F&B, property, health, digital security and transportation business.
“The loan does not work as a seed capital, because it will be difficult for us to see it from prudential banking perspective. We are eyeing startups that already run for one to three years but have limited financial capability to grow,” Tigor says, adding that four startups already on a pipeline to receive the loan.
The lender is cooperating with Genesis, which recently launched a venture debt business targeting startup market in Southeast Asia. Genesis is anchored by Sassoon Investment Corporation, the shareholder of The Coffee Bean & Tea Leaf and CIMB Niaga, as quoted from The Business Times. Genesis’ portfolio include GoWork, Grain and Horangi Cyber Security.