KONTAN.CO.ID - JAKARTA. The ambitions of P2P lending fintech players continue with their eyes on the multi-finance industry. Of course, market expansion is one of the expected goals.

Most recently, there is the Modalku Group which acquired PT Buana Sejahtera Multidana or has now changed its name to PT Modalku Financial Indonesia (Modalku Finance). Unfortunately, the money disbursed for the acquisition was not announced.

Instead of using multifinance as a vehicle to provide Buy Now Pay Later (BNPL) services, Modalku prefers to do conventional business by choosing to channel cash financing to MSMEs.

"We see that multi-finance is currently more focused on motorized vehicles or heavy equipment. We are agnostic and not affiliated with anyone, we serve MSMEs that need capital," said Modalku Finance President Director Steven Gunawan, Tuesday (11/22).

Steven explained that the purpose of Modalku Finance can be used for MSMEs that are upgraded so they need more funding. Remember, fintech P2P Lending can only channel a maximum loan of IDR 2 billion, while multi-finance can reach IDR 25 billion.

This expansion is actually not the first time for Modalku. Previously, through its subsidiary Funding Asia Group, Pte. Ltd, Modalku owns a 10% stake in PT Bank Index Selindo.

It's just that, Co-Founder of the Modalku Group, Reynold Wijaya, said that for now there are no plans to make any more acquisitions, including increasing share ownership in Bank Index to become the majority shareholder.

"We definitely don't have any acquisition plans for banks because of various things that are often explained, on the one hand they are very expensive," Reynold said.

He added, currently more focused on business continuity towards profitability. Thus, it will be wiser to expand in the future.

For information, based on Modalku's 2021 financial report, the company still recorded a loss of IDR 28.1 billion. Reynold said that the loss position is still the same today.

"To achieve a profitable company target, we continue to focus on developing fundamentals and business," said Reynold.

Seeing that there are new players in the multi-finance industry, Chairman of the Association of Indonesian Finance Companies (APPI) Suwandi Wiratno said that this would not have a big impact on competition. Keep in mind, the market is different.

"It all depends on the business model they are running," he said

On the other hand, Kelvin sees that the cash fund business has indeed increased in recent years. So, they can offer business cash funds in current conditions

It's just that, Kelvin emphasized that currently the multi-finance industry must still be careful about extending loans. "Not only does financing grow, but quality is healthy," he added.

Meanwhile, Indef Center of Innovation and Digital Economy Researcher, Nailul Huda sees their aim to expand market share and strengthen the existing ecosystem.

"Is it possible for them to expand with acquisitions to survive," he added.