• Published on 26 February 2024
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JULO earns $120M annually fueled by 50% portfolio growth

JULO, one of the leading digital financial service platforms dedicated to financial inclusion for the underbanked in Indonesia has achieved a remarkable annual recurring revenue of over $120 million, with its total loan disbursement experiencing a 50% growth in 2023.

The milestone comes alongside the company reporting operating profit breakeven in December 2023, underscoring its sustainable business model and operational efficiency.

Backed by investors such as AC Ventures, Credit Saison, Quona Capital, and Saratoga, JULO was founded with the vision to democratise financial services in Indonesia. It pioneered a unique consumer financing product that leverages holistic behavioural data for innovative credit underwriting. This approach has allowed JULO to successfully launch and manage virtual credit card products tailored to the needs of Indonesia’s middle-income segment, providing first-time credit access to millions and fostering economic empowerment across the country.

The company’s latest growth achievements also include a 73% increase in revenue in 2023. JULO disbursed more than $454 million in loans in 2023, bringing its total disbursements since 2016 to approximately $1 billion. The firm reports a remarkable 70% retention rate per cohort, which dramatically reduces loan acquisition costs and enhances operational efficiency.

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.

Ankur Mehrotra, group president of JULO explained: “Our key financial goal is to generate sustainable profitability for our shareholders and provide a liquidity event, such as an IPO (initial public offering) down the road. We believe that we are on the right track, as we optimise our core product, manage our risk efficiently through continued investment and attention to risk management, and further diversify our product portfolio, ultimately becoming a fully integrated financial service platform.”

Mehrotra said: "JULO has been laying the foundation to build a full stack of digital financial (neobanking) services for the middle-market segment in Indonesia. This segment provides a near $100 billion opportunity in Indonesia alone."

The company launched non-credit products, such as insurance in 2023, and will continue to build upon its new offerings.

Beyond financial services, JULO launched a local campaign in partnership with UNICEF in Indonesia, aiming to improve the quality of life of Indonesian children through donations made from every transaction. This initiative highlights JULO's commitment to societal impact and underscores the positive effects of its operations beyond financial metrics.

As JULO continues on its path of growth and innovation, it remains dedicated to its mission of providing accessible and inclusive financial services, driving positive change in the communities it serves, and setting new standards in the digital financial services industry.

Re-disseminated by The Asian Banker