Gajigesa Raises $2.5M Seed Round to Serve Indonesian Workers

GajiGesa Secures $2.5 Million in Seed Funding

A fintech firm focused on providing financial solutions for Indonesian workers, GajiGesa, has successfully raised $2.5 million in seed funding. The investment round was jointly spearheaded by Defy.vc and Quest Ventures.

Additional investors participating in this round included GK Plug and Play, Next Billion Ventures, Alto Partners Multi-Family Office, Kanmo Group, and a number of strategic angel investors.

Founding and Leadership

GajiGesa was established last year by Vidit Agrawal and Martyna Malinowska, a husband-and-wife entrepreneurial team. Agrawal brings extensive experience, having been the inaugural employee at Uber in Asia, alongside leadership roles at Carro and Stripe.

Malinowska’s background includes leading product development at Standard Chartered’s SC Ventures and the alternative credit-scoring platform, LenddoEFL.

Addressing Financial Inclusion in Indonesia

A significant portion – approximately 66% – of Indonesia’s 260 million citizens remain unbanked, lacking access to traditional banking services and financial products like loans.

Malinowska’s prior work with unbanked populations at LenddoEFL motivated the launch of GajiGesa in Indonesia. Agrawal’s experience with Southeast Asian drivers at Uber, earning an average of $250 USD monthly (excluding Singapore), highlighted the prevalence of predatory lending practices.

The Problem of Short-Term Liquidity

Agrawal explained to TechCrunch that Indonesian workers often lack access to fair and formal capital sources. The primary need for borrowing stems from short-term financial needs.

However, available options typically involve either long-term, substantial loans or short-term loans burdened with excessively high-interest rates.

Earned Wage Access as a Solution

Providing immediate access to earned wages, rather than adhering to traditional pay cycles, can significantly reduce financial strain and empower workers to better manage their finances and respond to unexpected expenses.

Other companies offering similar instant payment services to employees internationally include Square, Wagestream (based in London), and Gusto.

GajiGesa’s Growth and Features

Since its launch in October 2020, GajiGesa has onboarded over 30 employers, extending its services to tens of thousands of workers.

The platform seamlessly integrates with existing company HR and payroll systems. Through a dedicated app, workers can access earned wages instantly, monitor their earnings, settle bills, purchase prepaid cards, and utilize financial literacy resources.

A Fee-Free and Secure System

GajiGesa operates without charging interest or requiring collateral, as all users are pre-approved through their employers. Companies can choose to implement fees or integrate GajiGesa as a component of their employee benefits packages.

Furthermore, employers gain access to valuable analytics, enabling them to develop targeted incentives and enhance benefits for their workforce.

Increased Demand During the Pandemic

Agrawal noted a substantial surge in demand for GajiGesa’s Earned Wage Access (EWA) solution during the COVID-19 pandemic. This increase is linked to the challenges faced by employers due to the pandemic’s effects.

However, the platform is designed to provide sustained support for both employers and employees, with the benefits of EWA extending beyond the immediate crisis.