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JULO, a leading digital financial services platform dedicated to financial inclusion for the underbanked in Indonesia, has announced that it has achieved significant loan disbursement growth—so much so that it is ready to transform into a neobank.

In the first four months of 2024, JULO’s total loan disbursement surged by 87.19% compared to the same period the year before, exceeding USD $189 million. The company is now on track to disburse more than US$650 million in 2024.

To give context, the company has successfully disbursed over USD $1 billion in total since its 2016 inception, with a milestone of nearly USD$500 million disbursed in 2023 alone—a 50% increase from the previous year. The company has also seen a surge in its user base, attracting more than 2 million users, marking a 58% increase in 2023.

Backed by AC Ventures, JULO is now profitable before tax and expects to turn fully profitable by the end of the year. Capitalising on its proven business model and robust growth, JULO is poised to evolve into an impact-focused neobank, dedicated to serving the largely underserved Indonesian market and furthering financial inclusion in the region.

JULO: Innovative Consumer Financing at the Core

At the core of its success to date, the company has pioneered an innovative consumer financing product that utilizes comprehensive behavioral data for cutting-edge credit underwriting. This strategy has enabled JULO to develop and offer virtual credit card products specifically designed for Indonesia’s middle-income population, providing unprecedented credit access to millions and promoting economic empowerment throughout the nation.

The company’s latest growth achievements also include a 73% increase in revenue in 2023 and a remarkable 75%+ retention rate per cohort, which dramatically reduces loan acquisition costs and enhances operational efficiency.

Ankur Mehrotra, Group President at JULO

JULO’s growth is bolstered by partnerships with leading financial institutions, including global firms like Credit Saison and also local giants like Bank Sampoerna and Superbank, to empower disbursements to the middle-income segment in Indonesia.

JULO Group President Ankur Mehrotra explained: “Investor sentiments may fluctuate, mirroring the broader economic and investment cycles. Despite this volatility, the demand for a responsibly led, financial inclusion-focused financial services firm in Indonesia has remained steadfast. At JULO, we are committed to being that impact-driven entity. Now, more than ever, there is a clear investor appetite for businesses like ours that not only deliver substantial social impact but also generate solid financial returns for our investors.”

The middle-market segment in Indonesia provides an approximate USD $100 billion opportunity. The company recently launched non-credit products, such as insurance, in 2023 and will continue to build upon its new offerings.

Ankur said, “We are deeply optimistic about the long-term macroeconomic prospects of Indonesia and the enduring potential of its financial services industry, given that Indonesia has the lowest household debt to GDP ratio amongst ASEAN countries. Despite facing various crises and unforeseen headwinds, JULO has successfully navigated the market for over seven years and is now flourishing more than ever. We are committed to building a business that will transcend generations.”

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