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Ayoconnect’s APIs make it faster for businesses to launch new financial services instead of needing to build their tech infrastructure.
FREMONT, CA:Instead of developing their technological infrastructure, firms may quickly introduce new financial services to Ayoconnect's APIs, which are targeted toward Southeast Asia. Additionally, it has a licence from Indonesia's central bank, which allows it to provide more services.
The open finance startup said it had closed a USD 13 million Series B extension round, headed by SIG Venture Capital and included CE Innovation Capital, PayU, the payments and fintech division of Prosus, and returning investor CE Innovation Capital. With the oversubscribed first tranche of its Series B, which was led by Tiger Global and closed in January 2022, the company has now received a total of USD 43 million.
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Ayoconnect, established in 2016 and presently employs roughly 250 people, aims to increase financial inclusion for Indonesian consumers and SMEs. It collaborates with regulators and established banks and just received a Payment Service Provider Category 1 licence from the Bank of Indonesia (BI). According to Ayoconnect, it is the only participant in open finance in Indonesia to hold a central bank licence.
The additional money for Ayoconnect will be used to expand its management team and develop new banking, data, and payment solutions and new account opening and card issuance APIs.
Recent automated recurring direct debit launches by the firm with seven of Indonesia's biggest banks (Mandiri, BRI, BNI, CIMB Niaga, Danamon, Bank Syariah Indonesia, and Bank Neo Commerce). Through the usage of Ayoconnect's direct debit API, customers can now regularly deduct money from customers savings accounts at various banks.
CEO and founder Jakob Rost worked as a managing director at Lazada before founding Ayoconnect. He spent several years in Indonesia after leaving Lazada, where he observed how the nation could gain from greater digital financial inclusion. He cited the fact that, despite having the fourth biggest population in the world, about half of its citizens lack access to banking as an example. Additionally, due to its difficult location, the banking industry has a weak financial infrastructure, is fragmented, and lacks standardisation.
Furthermore, according to Rost, consumer-facing enterprises in Indonesia lack the digital financial infrastructure necessary to handle their own money while providing for their clients.
Ayoconnect rose again soon after Series B's original close because it expanded quickly and had also made significant strategic alliances after acquiring its BI licence. The fresh financing, according to Rost, will bolster Ayoconnect's balance sheet and position it for expansion over the coming years.
The platform now offers over 4,000 embedded finance products and serves 200 API clients, including big banks, financial institutions, tech unicorns, and fintech. To create Southeast Asia's most comprehensive open finance stack, its APIs fall into two categories: open banking APIs and payment services APIs.
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