Travelio received series C funding by several financial groups from Korea, followed by past participating investors. Fresh funds will be used for Travelio’s rent-to-own business.
Established in 2015, Travelio is a property technology management company based in Indonesia. The company manages various properties for rent and sale. These properties include apartments, houses and villas. The company has properties based in major cities in Indonesia such as Jakarta, Bekasi, Tangerang, Cikarang, Bandung and Surabaya.
Travelio continues to expand to various other cities in Indonesia
Just recently, Travelio received an undisclosed amount of Series C funding led by groups from Korea such as Daol Ventures, Orzon Ventures, Appworks from Taiwan, and past investors such as Pavilion Capital, to expand its business.
Christina Suriadjaja, Travelio’s Co-founder and CSO said that some of the fresh funds will be used to develop non-credit property instalment products with a rent-to-own scheme.
Rent-to-own is a concept where a person rents a property for a specified period with an option to purchase the property at the end of the lease. The tenant pays a certain amount of rent each month, and some of it channeled as down payment for the purchase of the property.
Rent-to-own concept provides an alternative for people to obtain rights over property, especially for thoe who may not have access to traditional credit options, or having difficulty to afford down payment for a mortgage.
“We are very excited to launch this new initiative because it will solve the problem of low home ownership for middle-income millennials, who make up the majority of our tenants. In this way, we will not only be a temporary solution for them for a few years, but instead for their whole life,” adds Suriadjaja.
Travelio plans to expand their business by increasing the range of their services in other cities. Currently, the platform operates in 12 cities in Indonesia, such as: Jakarta, Tangerang, Bekasi, Bogor, Depok, Bandung, Surabaya, Semarang, Karawang, Makassar, Yogyakarta, and Medan.
The Indonesian property sector in 2023
According to Haru Koesmahargyo, President Director of Bank BTN, as the Indonesian property sector is still quite resilient. Even during the Covid-19 Pandemic, this sector was one of 10 sectors that never recorded negative growth.
Koesmahargyo estimated that the prospects for the property sector in 2023 will continue to grow with the IMF’s projection of 5% economic growth for Indonesia. The need for housing remains high with an average of 800,000 new families forming every year.
According to the Rumah.com Indonesia Property Market Report, residential property demand was corrected by up to 40.4% in Q4 2022. Meanwhile, property searches above IDR 1 billion were recorded at 62%. Searches for property valued between IDR 1.5 to IDR 4 billion is recorded at 32%, and searches for property valued at IDR 4 billion or more is recorded at 20%.
Meanwhile, according to Lamudi.co.id, requests for properties valued under IDR 1.1 billion were still strong, with 81% of the total search.
