Strategic Partnership Between Helicap and Bank Danamon: A Leap Forward in FinTech and Alternative Lending in Southeast Asia

In a landmark collaboration that signals a significant shift in the financial landscape of Southeast Asia, Singapore-based FinTech firm Helicap Pte Ltd and Indonesian banking giant PT Bank Danamon Indonesia Tbk (Danamon) have joined forces. This strategic alliance, announced in February 2024, is poised to revolutionize the FinTech and alternative lending sectors, with a focus on providing non-dilutive growth capital to a wide array of businesses, including micro, small, and medium enterprises (MSMEs) across the region.

The Essence of the Partnership

A Comprehensive Solution for Growth Capital

The partnership is designed to serve as a one-stop solution, addressing the diverse needs of FinTech firms, alternative lending companies, and MSMEs across various sectors such as supply chain, leasing, and e-commerce. By leveraging Danamon’s vast banking network, which includes over IDR 221 trillion ($14.17 billion) in consolidated assets along with its subsidiary, PT Adira Dinamika Multi Finance Tbk (Adira Finance), the collaboration aims to unlock new levels of market access and industry insights​​​​.

Leveraging Strengths for Mutual Growth

Helicap brings to the table its six-year track record of managing a diversified debt portfolio without any defaults, complemented by advanced proprietary data analytics for robust risk assessment, investment selection, and portfolio management. This synergy is not just about capital provision; it’s about creating a supportive ecosystem for debt financing that caters to non-bank firms throughout their growth journey, from seed funding to IPO​​​​.

Helicap and Bank Danamon partnership report

Impact and Vision

Reshaping the Financial Landscape

Together, Helicap and Danamon are setting the stage to reshape Southeast Asia’s financial sector. This partnership is seen as a watershed moment for the region’s FinTech and alternative lending industry, merging Helicap’s credit expertise and data analytics capabilities with Danamon’s extensive banking network and expertise. The goal is to drive inclusive growth and unlock the full potential of businesses across the region​​.

A Focus on Innovation and Financial Inclusion

Andi S Wahdi, Enterprise Banking Business Head at Danamon, emphasized the partnership’s alignment with their commitment to supporting innovation and driving financial inclusion in Indonesia and beyond. Danamon, as part of MUFG (Mitsubishi UFJ Financial Group), benefits from the global financial group’s strengths, expertise, and network, which are instrumental in facilitating business growth and creating long-term value for stakeholders​​.

Strategic Outcomes

  • Enhanced Business Growth: Utilization of Danamon’s banking infrastructure and product suite is expected to spur business growth through increased transaction volumes and account openings from Helicap Group’s borrowers.
  • Visibility and Access to Products: The partnership will enhance visibility for Helicap Group, providing its borrowers access to a wider range of products, including cross-border collaborations, credit, and cash management solutions.
  • Co-Lending Ventures: The collaboration includes co-lending to targeted investees, thereby amplifying lending capacities and impact​​.

Conclusion

This strategic partnership between Helicap and Bank Danamon represents a forward-thinking approach to addressing the financing gap in Southeast Asia. By combining resources, expertise, and innovative solutions, the duo is set to empower the FinTech and alternative lending sectors, paving the way for sustainable growth and financial inclusion across the region.

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