A fintech lending startup, Kredivo announced debt funding worth of $20 million (over 283 billion Rupiah) from Partners for Growth V, L.P (PFG), a venture debt company with representatives across US and Australia.
The agreement named PFG as the biggest international institution lender in the company. On the other side, it’s the biggest deal ever made by PFG in Asia Pacific and its debut in Indonesia.
Kredivo’s Commissioner, Umang Rustagi explained, the debt is structured in credit form, it can be withdrawn to the limit of $20 million. The debt is to diversify loan channels, which mainly comes from locals.
“The debt funding will be a way to accelerate growth. The credit limit is to fuel all our business lines, such as e-commerce, personal loan, and offline,” he said in the official release.
Within the last 18 months, Kredivo’s number of transaction and loan distribution is said to increase by 40% and 35% per quarter.
Jason Georgatos, PFG Partner added to Kredivo’s virtue that meets the company’s vision to contribute to financial inclusion. He also mentioned Kredivo as one of the low-cost lenders with the best version of risk management.
Indonesia is an underbanked country of credit card usage. Only 3% of the total population have credit cards and less than 5% have access to unsecured loans. The gap becomes an opportunity for Kredivo.
In fact, the agreement was announced two months after Kredivo bags some investment with an undisclosed value from Telkomsel Mitra Inovasi (TMI) and MDI Ventures.
Recently, the company launched a new innovation called Zero-Click Checkout in order to make the payment easier on the e-commerce platform. This is also to lower the drop rate before payment.
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Original article is in Indonesian, translated by Kristin Siagian
