CROWDE’s $50M Lending Controversy: What Indonesia’s Latest Fintech Fraud Reveals

1. What has happened? 

According to DealStreetAsia, CROWDE, an agri-focused P2P lending platform backed by Monk’s Hill Ventures and Mandiri Capital Indonesia, has been hit by a major governance crisis. Internal whistleblowers revealed that between 2021 and 2024, approximately IDR 800 billion (~$49 million) in loan funds was diverted into fake farming projects, rather than reaching smallholder farmers.  

Only about IDR 500 billion ($30 million) of the IDR 1.3 trillion ($80 million) disbursed during that period went to legitimate agricultural activity. The rest allegedly passed through shell vendor companies linked to insiders.

2. Company background 

   
   

CROWDE was founded in 2016 by Yohanes Sugihtononugroho. It was initially hailed as a "fintech enabler for smallholder farmers," aiming to facilitate financial access for this underserved group. Its core business model was that of an Agri-focused Peer-to-Peer (P2P) lender. 

Initially, CROWDE's business model involved connecting farmers with individual (retail) lenders. However, by the end of 2019, CROWDE had completely shifted its model to work exclusively with institutional lenders, primarily banks.

Major institutional lenders included Bank Mandiri, Bank BJB, J Trust Bank, and some local BPRs (rural banks). CROWDE had also secured funding from major venture capital firms. Its last known funding round was a $9 million Series B in 2021, which was led by Monk’s Hill Ventures, Mandiri Capital Indonesia, Great Giant Foods, and Panasean Group. Previous investors included Strive (formerly Gree Ventures) and Crevisse. Notably, Bank Mandiri’s corporate venture capital arm, Mandiri Capital, was the third-largest shareholder in CROWDE. 

3. How was CROWDE's fraud executed? 

   
   

CROWDE's alleged fraud was a multi-faceted scheme that involved diverting loan capital through fake projects, shell vendor networks, and manipulated borrower data, exploiting vulnerabilities in the P2P lending model and the limited financial literacy of farmers. The fraud is be broken down as:

Diversion of loan capital through fake projects and shell networks

Out of 1.3 trillion rupiah (around $80.1 million) in total disbursed loans between 2021 and 2024, an estimated 800 billion rupiah ($49.3 million) were funneled through fictitious transactions, while only about 500 billion rupiah ($30.8 million) were linked to legitimate farming activity. 

The alleged wrongdoings are believed to have originated during the COVID-19 pandemic, when CROWDE, under pressure for growth from investors, began executing what insiders called "suspicious projects" that deviated from its standard lending model. What started as a single pilot project escalated into over 10,000 such initiatives. 

Under-disbursement to farmers and use of fake suppliers

Farmers who applied for loans, some for as much as 45 million rupiah ($2,774), reportedly received only a fraction of their approved amounts, typically 5-10 million rupiah ($308-616) in actual cash. 

The remaining funds were allegedly diverted through fake agricultural suppliers. These were limited partnerships (CVs) that posed as legitimate vendors but were allegedly controlled by CROWDE insiders. These fake entities then issued invoices for non-existent seeds, fertilizers, and farming equipment that never actually reached the farmers.

Large-scale cash withdrawals and lack of documentation

Bank statements from one of these fake CVs, seen by DealStreetAsia, showed CROWDE making daily transfers of around 40 million rupiah to the CV account. A few days later, over 1 trillion rupiah ($61.5 million) in cash was reportedly withdrawn via cheque from this CV account. This vast sum was then routed to another bank account as instructed by management. 

Crucially, no documentation recorded this massive cash outflow, necessitating a forensic audit by the whistleblower to retrace the money flow. At least 30 such fake supplier CVs were identified among hundreds of legitimate ones. 

Manipulation of borrower data and project recycling

The fraud also involved manipulated borrower data. In some cases, farmers who had previously taken out loans from CROWDE were allegedly recorded as new loan recipients, effectively recycling past borrowers for new, potentially fraudulent, loans.  Funds intended for legitimate agricultural inputs were also funnelled through fictitious partner stores, raising concerns that the money was diverted for other purposes. 

Exploitation of system vulnerabilities and farmer trust

CROWDE reportedly maintained full control over the disbursement process, managing both borrower and lender escrow accounts. This centralized control facilitated the alleged misconduct. 

The absence of direct communication between institutional lenders and the end borrowers. This lack of direct oversight meant lenders couldn't verify if farmers received their full loan amounts or the promised agricultural inputs. The limited financial literacy of many farmers also made the manipulation possible, as they might not have fully understood the terms or the discrepancies in their loan disbursements. 

Internal knowledge and silencing

More than 50% of CROWDE’s head office employees were reportedly aware of these fraudulent practices. However, no formal complaints surfaced for years due to a pervasive fear of retaliation, a lack of internal oversight, and a culture of silencing reinforced by the company’s leadership. The internal disbursement structure, the fake vendor network, and the manipulated borrower data were all reportedly overseen by top executives. 

4. Outlook for CROWDE 

   
   

Legal and regulatory fallout

The most significant immediate threat is the police report filed on February 11, 2025, by J Trust Bank against CROWDE's management team, accusing them of fraud, embezzlement, and money laundering. This legal action, initiated by an institutional lender, underscores the severity of the alleged misconduct and will likely lead to criminal proceedings against key executives, including ex-CEO Yohanes Sugihtononugroho, commissioners Adryan Hafizh and Ahmat Sahri, and president director Andrew Yeremia PL Tobing. 

Furthermore, the Financial Services Authority (OJK) has halted CROWDE's business license since the allegations surfaced earlier in 20252. OJK's public statement on May 19, 2025, indicates ongoing monitoring and coordination with law enforcement agencies to support legal proceedings. This regulatory intervention effectively prevents CROWDE from conducting its core business operations. 

Operational collapse

CROWDE's operations appear to have largely ceased. Magdalena Joyce Andries, who had recently replaced Yohanes Sugihtononugroho as CEO, has resigned. The company is reported to have laid off all its staff earlier in 2025, with many allegedly not receiving their full layoff packages. Emails sent to the company's official ID are bouncing, suggesting it has become inactive. This points to a complete shutdown of day-to-day operations. 

Deceptive financial image

Despite the internal collapse and legal issues, CROWDE's website, as of March 5, 2025, continued to project a misleading image of financial health with a TKB90 score of 97%. 

However, this figure was artificially inflated using fake borrower data and recycled projects to mask the platform’s actual performance. Insiders also claim the FY2023 financial figures obscure the true scale of misappropriated funds and hidden liabilities. This suggests any public-facing data is unreliable and aims to obscure the grim reality. 

Potential salvage efforts

Despite the severe challenges, there is a glimmer of a potential future for the company, albeit in a restructured form. Some investors are reportedly exploring options to salvage CROWDE. 

Monk’s Hill Ventures, a key investor, is believed to be considering acquiring a majority stake from Mandiri Capital Indonesia and other shareholders. The proposed plan involves a restructuring of operations, significant improvements in financial oversight, and potentially maintaining Bank Mandiri as a lending partner. Yohanes Sugihtononugroho has confirmed that a recovery plan is being discussed, with Mandiri Capital leading the process. However, details remain undisclosed due to non-disclosure agreements. 

5. Broader Industry Context 

Investor Sentiment and Fundraising Outlook 

The fallout is likely to deepen caution among both local and foreign investors, particularly in sectors where business models rely on financial intermediation, such as lending, invoice financing, and embedded credit. Although SEA remains a long-term growth story, the short- to medium-term fundraising climate is tightening. 

Venture capital (VC) fundraising in Southeast Asia took a significant hit in 2024, plunging 68 per cent against 2023 and marking a four-year low, according to a recent report from DealStreetAsia Data Vantage. The fourth quarter marked the weakest funding environment in over six years. CROWDE’s collapse could reinforce these trends, prompting funds to delay deployments or tighten deal screening criteria, especially in Indonesia, where multiple P2P platforms are under distress or have entered liquidation. 

Governance Scrutiny and Institutional Recalibration 

One immediate effect is increased scrutiny on governance practices. The allegations against CROWDE, ranging from the use of fake vendors and recycled borrower data to inflated repayment scores, highlight systemic gaps in internal controls and independent auditing. 

Institutional LPs may respond by favoring VC firms with more active portfolio monitoring, board representation, and structured post-investment governance frameworks. Funds that historically prioritized speed and founder-market fit may face pressure to institutionalize oversight processes and conduct more rigorous operational diligence. 

Regulatory Implications 

In Indonesia, where the Financial Services Authority (OJK) has already suspended CROWDE’s license, the case is likely to serve as a catalyst for stronger enforcement and licensing standards in the fintech lending space. Policymakers are expected to pursue stricter disclosure requirements, deeper background checks on key executives, and tighter controls around escrow fund management. 

While these measures may increase compliance costs, they could ultimately restore lender confidence and support the long-term health of the sector. In the near term, however, regulatory tightening could reduce the number of active platforms and raise barriers to entry for new fintech startups. 

Reputational Spillover for Impact and Agri-Focused Startups 

CROWDE’s early positioning as an impact-driven solution for smallholder farmers complicates the picture further. The reputational damage may extend beyond the P2P sector to affect adjacent verticals such as agri-fintech and rural financial inclusion startups. 

To counter this, companies in these segments will likely need to emphasize third-party auditing, measurable impact reporting, and governance transparency—not only to secure capital, but to preserve the credibility of mission-driven innovation in the region.

6. Conclusion 

   
   

CROWDE’s downfall is a pivotal moment for Southeast Asia’s fintech sector. Beyond the legal proceedings and investor losses, the case underscores a deeper structural challenge: building scalable financial platforms that are not only innovative, but also trustworthy and well-governed. As fundraising conditions remain fragile, the startups and funds that emerge stronger will be those that treat governance as a core competency, not a regulatory checkbox. 

References:

CROWDE. Official Website. Accessed July 15, 2025. https://crowde.co/

Ng, J. (2024, June 24). Indonesia’s agri-focused P2P lender Crowde faces allegations of financial misconduct. DealStreetAsia. https://www.dealstreetasia.com/stories/crowde-allegations-financial-misconduct-448950

Tech in Asia. (2024, June 25). OJK reviews J Trust Bank’s report against fintech startup Crowde. https://www.techinasia.com/news/ojk-reviews-trust-banks-report-fintech-startup-crowde