Indonesia’s KinerjaPay to acquire Digital Payments firm Mitra Distribusi Utama

Mon Oct 8, 2018 - 8:13am UTC
KinerjaPay

KinerjaPay

8/10/2018 – Indonesia’s digital payments and ecommerce platform KinerjaPay recently announced that it has acquired Mitra Distribusi Utama (MDU) through its subsidiary Kinerja Indonesia.

Financial details of the deal were not disclosed but it is expected to be completed by the end of 2018. The deal will also see an additional profit to the company with a total sales increase of US$39 million.

KinerjaPay is confident that, the integration of Mitra Distribusi Utama and Kinerja Indonesia will grow and strengthen its business throughout the country.

Edwin Witarsa Ng, the Chairman, and CEO of KinerjaPay said, “This acquisition will transform KinerjaPay’s position in the market to become one of the leading mobile prepaid companies in Indonesia.”

“With the current average transaction volume of more than 2 million transactions per month, MDU will contribute significantly to the total transaction volume and revenue for the company,” said Ng. “We look forward to being able to offer all of KPay’s other products to MDU’s 2 million existing customers.”

Established in 2007, MDU is a mobile prepaid top-up data package provider for all telco operators in Indonesia. It offers digital payment solutions for mini-market entrepreneurs, supermarkets, convenience stores, restaurants, workshops, and e-commerce sites.

Last year, the company recorded over US$30 million of sales, mainly in selling prepaid top-up balances and data plan for internet usage to Indonesia’s ever-growing mobile internet users. Moving forward in the near future, MDU also has plans to expand their digital payment service to other e-commerce verticals such as travel market, delivery services, and online gaming.

KinerjaPay, on the other hand is the first Indonesian ecommerce company to be listed on the US OTC Market, It is a digital payments company providing payment solution for online shopping and with its current omnichannel platform, users can perform various payment services such as credit card bill payment, utility, phone bill, healthcare insurance, and direct money transfer.

Earlier this year, the company acquired Kinerja Indonesia, whose line of businesses includes data center, web hosting and development, network solutions, e-wallet, and games.

The acquisition gives KinerjaPay the access to cloud network and IP technology, a sector which the company has been looking to enter into with its very own KinerjaCloud. The technology will also enable the company to expand beyond Indonesia into Vietnam and Thailand.

This news is published on Reuters.

Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.