The Indonesian Peer-to-peer (P2P) lending startup, Amartha has raised $7.5 million from the Norwegian government-owned investment fund, Norfund, media Dealstreetasia reports.
Amartha is a financial technology company that connects micro and SME business partners with investors and the funds will be channeled to women micro-entrepreneurs in rural areas as business capital loans. This loan disbursement coincides with Amartha’s efforts to promote environmentally friendly business practices such as reducing the use of plastic and utilizing renewable energy.
According to the founder and CEO of Amartha, Andi Taufan, the company adopted a different initiative by charging lower interest rates for borrowers who implement green business.
In addition to encouraging environmentally friendly business practices, Amartha will also launch several financial products such as micro-insurance and savings. The startup, which was founded in 2010, has collaborated with insurtech startups and lenders to provide these products.
Norwegian Norfund is a private equity company established by the Norwegian Storting in 1997 and owned by the Norwegian Ministry of Foreign Affairs. The fund receives its investment capital from the state budget. Its head office is located in Oslo with local offices in Thailand, Costa Rica, Kenya, Mozambique, and Ghana.