The company said that it will use the funding to support its product expansion plan and its vision to make property more affordable and investable to the Indonesian mass market. To do so, Gradana said that it brings together an ecosystem of developers, agents, investors, and banks to solve Indonesian challenges for borrowers.
Through Gradana, users are allowed to invest by becoming lenders or to obtain financing by becoming borrowers on their peer-to-peer (P2P) platform.
“Gradana has the opportunity to become the region’s first digital mortgage company by providing services across the entire mortgage value chain,” said Herston Powers, Principal at tryb.
Gradana’s solution approach aimed to tackle the low penetration issue against the high housing demand, all despite the 20 per cent growing rate of Indonesian mortgage market. The unmet demand, according to the data provided by tryb’s official statement, has been quantified as a 13.5 million housing backlog with 800,000 added every year.
The staggering number led the government to launch ‘One Million Houses’ programme to address the backlog or shortage of houses across Indonesia partly due to borrowers’ inability to afford housing. For those interested in renting, most Indonesian landlords require a minimum of one-year rental in advance while most renters would rather pay monthly installments.
Angela Oetama, Co-Founder and CEO of Gradana, stated “Buying or renting a property in Indonesia generally requires a significant down payment or upfront payment that limits the ability of many borrowers to afford the units. With the support of our partners, we have developed an offering for borrowers to work with developers, agents, investors, and banks to finance mortgages and rentals while managing risk for all stakeholders.”
Gradana currently offers four products for lenders and borrowers to choose from: GraDP/GraStrata (for property purchase financing); GraSewa (for rental bridging loan for borrowers to obtain install monthly payments); GraRenov (for renovation/interior design financing), and GraKarya (invoice-based financing for property related vendors).
Image Credit: tryb Group