KinerjaPay Corp (OTCMKTS:KPAY) said Thursday that CEO Edwin W Ng, who is also the company's chairman, is investing $1 million into the Jakarta-based company to accelerate the lending platform’s growth.
Investors are likely to interpret Ng’s investment as a vote of confidence in the company.
"I decided to inject my own capital from recent asset sales to jumpstart our micro-lending operation, using our KFUND platform. The opportunity for the company to rapidly grow in Indonesia's alternative lending market is a once-in-a-lifetime opportunity,” said Ng in a statement.
“I also want to demonstrate my commitment to our loyal shareholders. KFUND's recently received license gives us the opportunity to generate significant earnings for KinerjaPay this year," he added.
The KinerjaPay boss’ investment is in the form of a convertible preferred at $0.10 per share with no antidilution protection, said the company, while adding the fund will also be used to support e-commerce trades, B2B transactions, and Online Pulsa (mobile prepaid top-ups).
Ng also emphasized that the company continued to “make progress” with several investors to deliver the MT-760 bank guarantees to allow KinerjaPay's Indonesian subsidiary to draw on its non-recourse credit line.
“We anticipate positively updating our shareholders shortly. I am convinced that the company will grow and become a significant player in e-commerce as well as peer-to-peer lending,” said Ng.
“My investment will generate sales and cashflow growth. We expect to see results over the next three months," he added.
Jakarta-based KinerjaPay is a micropayments and microloans business offering digital payments and an e-wallet system. The company has a target of reaching 25,000 loans per month down the road to achieving a minimum $5 million market size on a monthly turnover to turn profitable.
Contact the author Uttara Choudhury at [email protected]
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