Oy! Raises 653 Billion Rupiah Funding, Soon to be Centaur

Afintech platform providing transfer service, Oy! reportedly raises series A funding worth of $45 million or equivalent to 653.4 billion Rupiah. Softbank Ventures Asia and MDI Ventures led the round with some investors including Pavilion Capital, AC Ventures, Alfamart, Central Capital Ventura, Wavemaker Partners.

Apart from already registered with the regulator, parties that involves in this agreement confirmed the new round. The total funding is said to take the company's valuation to $108 million. AC Ventures entrance also brought one of its founding partners, Pandu Sjahrir, to the ranks of Oy!'s board members.

Oy!'s seed round has been raised from 2017 to 2020, several investors involved including MDI Ventures, Wavemaker Partners, Pavilion Capital, and Central Capital Ventures.

Oy! Indonesia offers several services, both for consumers and business. On the B2C sector, they have the Oy! Indonesia app to accommodate fund transfer between banks. Its capabilities also include remittances, enabling transfers between countries.

In terms of business, they provide API services to facilitate transactions, both for sending and receiving funds. Based on our observation, with the development of existing features, Oy! Indonesia seems more serious in working on the B2B segment. The open finance service potential is really impressive as business are transforming and trying to provide efficiency in the financial transaction process on its platform.

In the interbank transfer feature for consumers, Oy! is in close competition with the Flip app. We have specifically conducted an analysis of the two platforms. The market share is quite large for this service, based on BI data throughout 2019, the volume of domestic transactions was recorded at more than 218.89 million with a nominal value of Rp84.47 trillion. The remittance business alone recorded 37.7 million transactions with a value of Rp90.67 trillion.

This service is also available to resolve the interbank transfer fees issue.  Alfamart entrance as a strategic partner shows interesting indication, regarding the potential of Oy! to enter the online-to-offline (O2O) model in selling its services. This is in line with one of fintech's visions to serve the underbanked, which still a big number in Indonesia.

–Original article is in Indonesian, translated by Kristin Siagian