Indonesian spend management platform Monit has raised US$2.5 million in a funding round led by Cento Ventures.

The round also included participation from Japan-based Sansan and returning investors 1982 Ventures and Init 6.

Founded in 2022 and based in Jakarta, Monit integrates corporate cards with AI-powered software to address business spending and financial management challenges.

Since its launch, the company has processed over US$200 million in total payment volume.

Monit plans to use the new capital to strengthen its product capabilities, with a focus on artificial intelligence and machine learning.

The company also intends to expand its leadership and sales teams.

Digital Payment Growth Creates Opportunity for Spend Management Platforms

Indonesia is undergoing a major shift from cash to digital payments. This change is driving demand for business-focused financial platforms like Monit.

Southeast Asia is projected to surpass US$1 trillion in digital transactions by 2025, with Indonesia playing a leading role.

Mobile wallets now account for 73% of e-commerce payments in Asia. In Indonesia, QR code payments are seeing rapid adoption due to their simplicity and low cost.

However, many businesses continue to face fragmented and inefficient financial processes.

Monit’s platform addresses these gaps by offering enterprise-grade solutions tailored to the Indonesian market.

Spend Management Software Sees Global Growth with Localized Focus

The spend management software sector is expanding globally, projected to grow from US$5.2 billion in 2024 to US$11.5 billion by 2033 at a CAGR of 9.5%.

While established players like Coupa, Ariba, Airbase, and Procurify lead internationally, regional platforms such as Monit are addressing specific market needs.

Monit has already processed over US$200 million in payments and is targeting US$1.4 billion in annualized transaction volume by 2026.

Its focus on AI and machine learning is part of a broader trend in the sector, where predictive insights and automation are key differentiators.

Indonesia’s Financial Infrastructure Modernization Drives Enterprise Demand

Indonesia’s economic development highlights the need for improved financial infrastructure. Growth slowed from 5.6% between 2001 and 2012 to 5.1% in 2016.

The Gini coefficient rose from 30 in 2000 to 41 in 2014, indicating increased income inequality.

While poverty has declined from 22% in 1999 to 11.2% in 2015, businesses still struggle with outdated financial systems.

Public financial management reforms since 2002 have created a stronger legal foundation for fintech innovation.

Monit serves nearly 1,000 Indonesian businesses, including large enterprises such as Ciputra Group.

Its platform addresses complex financial needs not met by traditional banking systems.

PHOTO: FREEPIK

This article was created with AI assistance.