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JULO hits $120 million annual recurring revenue, boosts financial inclusion
Fri, 1st Mar 2024

JULO, Indonesia's digital financial platform devoted to financial inclusion of the underbanked, unveiled that it has achieved significant annual recurring revenue of over USD $120 million. In addition, the company revealed a 50% growth in total loan disbursement in 2023. Interestingly, this accomplishment arose concurrently as the company reported reaching operating profit breakeven in December 2023, highlighting its sustainable business model and impressive operational efficiency.

JULO provides individuals access to quick and convenient loans through an online application process. The company utilises technology and data analytics to assess creditworthiness and offer personalised loan products tailored to the needs of its customers. With a focus on financial inclusion, JULO aims to provide accessible and affordable credit solutions to underserved segments of the population, helping them meet their financial goals and manage unexpected expenses.

Financially backed by investor giants like AC Ventures, Credit Saison, Quona Capital and Saratoga, JULO was established with a clear objective to democratise financial services in Indonesia. Their strategy appears to have paid off handsomely, with some impressive numbers to show.

Since its inception in 2016, JULO has disbursed more than USD $1 billion, with USD $454 million of loans being provided in 2023 alone. These figures represent almost 50% growth in loan disbursement compared to the previous year, 2022. Moreover, the company logged a striking 73% increase in revenue in 2023.

The company's operational model seems effective and draws top-tier financial institutions. Global attachment is evident with the involvement of entities like Credit Saison. Also, local financial titans, Bank Sampoerna and Superbank, have extended their support to give power to disbursements to the middle and lower-middle-income sections of the community.

One of the key contributors to JULO's success is its impressive customer retention rate. The company notes a hefty 70%+ retention rate per cohort, meaningfully lowering loan acquisition costs and boosting operational efficiency.

Ankur Mehrotra, Group President of JULO, comments, "Our key financial goal is to generate sustainable profitability for our shareholders and provide a liquidity event such as an IPO 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." 

This remarkable achievement by one of Indonesia's digital financial platforms is not just a win for the company but also the financial inclusion of the underbanked population in the country. The milestone of reaching a significant annual recurring revenue is a clear testament to the strong and sustainable business model that JULO has built over the years.

By achieving the annual recurring revenue milestone, JULO is committed to financial inclusion while underscoring its financial robustness and business sustainability. Such performances will likely keep JULO standing out amongst the financial institutions in Indonesia and beyond.