Gajigesa Launches New App for Indonesian Micro-SMEs with Strategic Investment

GajiGesa Secures New Investment for Expansion in Indonesia

GajiGesa, a financial technology company operating in Indonesia, has welcomed new strategic investors to facilitate the rollout of innovative services and broaden its reach among workers. These new backers encompass OCBC NISP Ventura, the venture capital division of a prominent Indonesian bank, and the originating founders of the popular Kopi Kenangan coffee chain.

Expanding Services to SMEs with GajiTim

Recently, GajiGesa extended its services beyond larger enterprises with the introduction of GajiTim, an employee management system tailored for small and micro-sized businesses. Designed for companies employing between five and one hundred individuals, GajiTim has rapidly gained traction, amassing over 50,000 active users since its launch in mid-March.

The specific financial details of this latest funding round have not been disclosed. Previously, the startup, founded by Vidit Agrawal and Martyna Malinowska, secured a $2.5 million seed round in February, spearheaded by Defy.vc and Quest Ventures.

Over the past three months, GajiGesa has witnessed a doubling of its enterprise client base, now serving more than 60 companies and representing a substantial workforce.

Part of a Growing Fintech Trend in Indonesia

GajiGesa is at the forefront of a burgeoning trend of startups focused on the digitization of Indonesia’s 60 million small businesses. Similar companies include BukuWarung and BukuKas, which offer digital bookkeeping solutions for very small businesses like local shops, as well as Moka and Jurnal, catering to larger organizations. CrediBook concentrates on business-to-business (B2B) transactions.

Founders’ Experience and the Core Mission

Prior to establishing GajiGesa, Vidit Agrawal held the distinction of being Uber’s inaugural employee in Asia. Martyna Malinowska previously served as a product lead at Standard Chartered’s SC Ventures and the alternative credit-scoring platform LenddoEFL. Their vision for GajiGesa was to provide workers with a viable alternative to payday loans and lenders charging exorbitant interest rates.

The platform enables employees to access their earned wages immediately, circumventing the traditional wait for bi-weekly or monthly paychecks. Comparable services are offered globally by companies such as Square, Wagestream (based in London), and Gusto.

According to a recent survey conducted by GajiGesa, over 75% of workers utilizing the EWA feature have ceased relying on informal lending sources for short-term financial needs.

Strategic Partnerships for Growth

The founders of Kopi Kenangan, who have received investment from Sequoia Capital India, Alpha JWC, and Horizons Ventures, have become active angel investors in the startup ecosystem. Agrawal anticipates their extensive network will facilitate the onboarding of additional employers. Furthermore, the strategic alliance with Bank OCBC NISP is expected to drive the development and launch of new services.

GajiGesa co-founders Vidit Agrawal and Martyna Malinowska. Image Credits: GajiGesa

“We’ve observed that many employees utilizing the earned wage feature are expressing a desire for additional financial products, such as loans or insurance,” Agrawal explained to TechCrunch. “This presents an opportunity to collaborate with a bank.”

Approximately two-thirds of the Indonesian population remains “unbanked,” lacking access to traditional banking services. This partnership offers Bank OCBC NISP a pathway to acquire new customers.

Structuring Financial Products and Gathering Insights

“Collaborating with a bank allows us to establish appropriate interest rates, product sizes, and ultimately, create a more significant impact,” Malinowska stated.

GajiGesa operates without charging interest or requiring collateral, as eligibility is determined by employer pre-approval. Companies have the option to impose fees or integrate GajiGesa as part of their employee benefits package. When a worker requests a withdrawal, GajiGesa gathers data on the reason for the request, presenting this anonymized and aggregated information to companies.

Data-Driven Benefits and Employee Needs

This data empowers employers to understand the financial needs of their workforce and potentially enhance their benefits offerings. For instance, medical expenses consistently rank among the top reasons for utilizing EWA, signaling to employers the potential value of providing even basic insurance coverage, particularly for blue-collar employees.

GajiGesa has also identified a trend among workers, particularly in smaller cities, of using EWA funds to support family-owned businesses instead of seeking traditional working capital loans.

“Many Indonesian families have a member employed in a factory with a stable income, alongside a small-scale home-based business, such as producing wafers or stickers for local or online sales,” Agrawal explained. “Previously, they relied on loan sharks with extremely high interest rates. Now, the factory worker can withdraw funds to invest in the family business, avoiding these predatory lenders.”

GajiTim: Addressing the Needs of SMEs

The launch of GajiTim was prompted by a surge in inquiries from SMEs, including restaurants, small factories, and general stores, employing numerous part-time workers. These businesses often depend on manual systems, such as time cards, for tracking hours and calculating wages, which can lead to disputes. GajiTim provides a real-time solution for tracking working hours and earned wages, enhancing transparency for workers and streamlining processes for companies. It also provides access to GajiGesa’s core EWA service, expanding the platform’s client base.