Amartha Secures $55 Million to Empower Women Entrepreneurs in Indonesia
In a significant move for financial inclusion in Indonesia, Amartha, a pioneering fintech company, has successfully secured $55 million in funding from three European development finance institutions: Swedfund from Sweden, Finnfund from Finland, and BIO, the Belgian Investment Company for Developing Countries. This funding aims to bolster the financial capabilities of grassroots women entrepreneurs across Indonesia, a segment that has historically faced barriers to accessing capital.
A Testament to Trust and Potential
Andi Taufan Garuda Putra, the Founder and CEO of Amartha, expressed his enthusiasm for this collaboration, stating, “This partnership highlights foreign investors’ recognition of both the tremendous potential of the grassroots segment and Amartha’s strong capability and governance in serving it.” The funding will specifically target women-led microenterprises in rural areas, enhancing their access to essential financial resources.
Breakdown of the Funding
The $55 million funding is part of a larger syndicated facility of up to $199 million, led by the International Finance Corporation (IFC), a member of the World Bank Group. Swedfund contributed $25 million, while Finnfund and BIO each provided $15 million. This financial backing comes at a crucial time when startup investments in Southeast Asia have seen a decline, making this funding a strong vote of confidence in Amartha’s grassroots-focused model.
Empowering Women Entrepreneurs
Since its inception in 2010, Amartha has made significant strides in providing financial services to over 3.3 million ultra-micro businesses in Indonesia, with an impressive 99 percent of these businesses being women-owned. Taufan emphasized the importance of their operational model, which combines responsible lending with digital innovation. “Our model builds trust not just with our customers, but with global investors seeking real impact,” he noted.
Innovative Financial Solutions
Amartha has developed the AmarthaFin digital app, which allows customers to become micro-lenders to other group loan borrowers. This innovative approach not only broadens access to financial services but also enables borrowers to generate additional income. Ulla-Maija Rantapuska, Senior Investment Manager at Finnfund, highlighted this innovation as a key factor in expanding financial inclusion in underserved areas.
The Role of Digital Financial Tools
The importance of digital financial tools cannot be overstated, especially in rural communities where traditional banking infrastructure is often lacking. Joris Totté, CEO of BIO, emphasized that digital payments and e-wallets are powerful instruments for financial inclusion. By leveraging technology, Amartha aims to create a more inclusive economic landscape for women entrepreneurs.
Global Collaboration for Local Impact
Earlier this year, Amartha hosted the 2025 Asia Grassroots Forum in Bali, bringing together global players to discuss the untapped potential of rural economies. This forum laid the groundwork for broader investment and collaboration, showcasing Amartha’s commitment to improving the welfare of the grassroots segment through tailored digital financial services.
A Vision for the Future
Amartha’s mission is clear: to enhance the welfare of the grassroots segment by providing tailored digital financial services. As of March 2025, the company has disbursed over 35 trillion rupiah in working capital loans to 3.3 million MSMEs, with more than 90 percent led by women across over 50,000 villages in Indonesia. This impressive track record underscores Amartha’s dedication to empowering women and fostering inclusive economic growth.
About Amartha
Founded in 2010, Amartha has evolved into a key player in building a microfinance ecosystem in Indonesia. By focusing on capital loans, risk segmentation, and payment services, Amartha aims to increase the competitiveness of micro, small, and medium enterprises (MSMEs). The company is licensed and supervised by the Financial Services Authority (OJK), ensuring that its operations meet regulatory standards while driving financial inclusion.
About the Funding Institutions
Swedfund
Swedfund is Sweden’s development finance institution, dedicated to reducing poverty through sustainable investments in developing countries. Its investments aim to create decent jobs and increase access to essential products and services.
Finnfund
Finnfund is a Finnish development financier and impact investor focused on building a sustainable future. It invests in businesses that address global development challenges, with a strong emphasis on renewable energy, sustainable agriculture, and digital infrastructure.
BIO
BIO’s mission is to promote the establishment of a robust private sector in developing and emerging countries. By supporting sustainable development within the framework of the Sustainable Development Goals, BIO aims to strengthen the private sector in these regions.
Amartha’s recent funding marks a pivotal moment in the journey toward financial inclusion for women entrepreneurs in Indonesia, showcasing the power of collaboration and innovation in addressing economic disparities.