- LinkAja secures strategic investment from Mitsui.
- The Indonesian digital payment firm plans ecosystem expansion.
- LinkAja targets positive net income in 2024 after achieving EBITDA profitability.
Milestone investment marks first international backing
Indonesian digital payment system provider LinkAja has secured a strategic investment from Japanese trading house Mitsui & Co.
The deal, which marks the first international investment into LinkAja, comes after the company achieved EBITDA profitability in late 2023. LinkAja plans to utilize the funds to expand its ecosystem and business through partnerships with its state-owned enterprise (SOE) shareholders.
From telco service to joint venture
LinkAja began as a service under Indonesian telco Telkomsel before spinning out in 2019 as a joint venture between 10 SOEs.
Apart from Telkomsel, which holds a majority stake, LinkAja’s investors include energy giant Pertamina and state-owned banks BNI, BRI, and Bank Mandiri.
Under the leadership of CEO Yogi Rizkian Bahar, the company revamped its business approach and cut costs, including an 80% reduction in marketing expenses, leading to positive EBITDA in late 2023.
LinkAja’s profitability targets
LinkAja has sharpened its focus on the SOE ecosystem, a strategy it aims to continue in 2024.
The company targets achieving a positive net income by this year and plans to leverage its partnerships with SOE shareholders to expand its ecosystem and business.
For Mitsui, the investment in LinkAja supports its digital finance business development, particularly in areas like ICT and retail, as the Japanese trading house grows its focus on the value of the digital economy in Indonesia.
To read the original article: https://www.techinasia.com/linkaja-expand-payment-ecosystem-mitsui-backing
