- KoinWorks reports 71% revenue growth in 2022, reaching US$15 million.
- The company invested heavily in automation and product development.
- KoinWorks expects profitability by 2024, focusing on strategic partnerships.
Jakarta-based fintech company KoinWorks reported a 71% increase in net revenue, reaching US$15 million in 2022, according to filings submitted to Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
The revenue growth was attributed to higher income from loan operations, a 108% jump in disbursed loans, and a 34% rise in outstanding loans.
However, the company also experienced a more than fivefold increase in losses compared to the previous year, amounting to US$23.5 million.
Investing heavily for future growth
KoinWorks’ significant losses in 2022 were due to substantial investments in automation and product development throughout the year.
The company secured US$108 million in a series C funding round in January 2022, bringing its total disclosed funding to US$168 million.
It also acquired rural bank BPR Asri Cikupa in September 2022, later rebranding it as KoinWorks Bank to support its long-term business development and expand its financing coverage.
Focusing on strategic partnerships
Despite the challenges faced in 2022, KoinWorks remains optimistic about its path to profitability. The company expects to book a net profit by the end of 2024 and believes its cost-efficiency measures implemented in 2023 will support this goal.
KoinWorks’ P2P lending business and KoinWorks Bank have already achieved profitability, the latter reporting its first profitable month in January 2024.
The company plans to transform KoinWorks Bank into a digital bank by 2025, allowing users, especially MSMEs, to open digital savings accounts.
To further improve its loan performance, KoinWorks aims to minimize risks through strategic partnerships with key distributors in the country, enabling the company to assess the repayment ability of potential borrowers more effectively.
To read the original article: https://www.techinasia.com/koinworks-sees-revenue-surge-losses-widen-2022-targets-profitability-2024
