Fintech startup engaged in online lending service FinAccel (using Kredivo brand) announces Series B funding worth US$30 million (over Rp435 billion) led by Square Peg Capital, with the new investor MDI Ventures and Atami Capital. Existing investors, such as Jungle Ventures, OpenSpace Ventures, GMO Ventures, AlphaJWC, and 500 Startups also participated in this round.
Akshay Garg, Kredivo’s CEO said it’ll be used for new service development outside the loan via e-commerce, regional expansion, and recruiting more talents in engineer and data scientists.
Regarding the target countries, it’s still in evaluation. The three countries in consideration are Thailand, Philippines, and Singapore. In the next six months, FinAccel will announce one of the countries ready for expansion.
“In the next six months, we’ll decide a country for expansion. It’s now being evaluated,” Garg said on Wed (7/25).
He continued that the new product in development will be targeting outside the e-commerce ecosystem, like loan for study, medical, emergency cost, house renovation, and others.
Tushar Roy, Square Peg Capital’s Partner commented in the official release that Kredivo is an institutional-class business in all aspects, through the automation of very complex loan elements, and trusted by Indonesia’s best merchants. Kredivo has a bank-class risk metric and already draw institutional debts.
Kredivo is claimed to have teams with integrity and high experience to be motivated in solving big problems for sellers and consumers in Indonesia, therefore, it’ll support the whole economic growth.
“We’re very proud to support Kredivo’s team vision in allowing a better financial service for the young generation in Indonesia and SEA,” he explained.
Nicko Widjaja, MDI Ventures’ CEO added, Kredivo is a market leader in consumer loan service with an advanced credit scoring process in the industry. Investment in Kredivo will mark MDI Ventures’ first portfolio in fintech lending segment.
“With our participation, we expect to support more underserved segments in this market, where we can access various kinds of credit sources that can use Kredivo technology to fasten the disbursement process,” he said.
Business performance and next plans
Garg said, the company will increase the marketing activities for new customer’s acquisition by setting up some billboards in public. They also raised some initiatives for strategic partnerships with Telkom Group that now involved as Kredivo investors network.
“We choose the leading strategic investors for the next time we can make partnership synergy. There will be many new initiatives to do with Telkom Group, particularly Telkomsel.”
After dua years establishment, Kredivo has become one of the most adopted alternative method for digital credit card by Indonesia’s marketplace. It is claimed to be the only online payday loan that has collaborated with almost 10 e-commerce sites, including Tokopedia, Shopee, Bukalapak, Lazada, and more than 200 others.
Kredivo’s business growth in GMV (Gross Merchandise Value) reaches 5 times up without any detailed number. The company has evaluated more than 2 million of Indonesia’s consumers and help the online merchants for significant customer retention and revenue.
Around 80% of the transaction every month comes from Kredivo loyal customers with more than 500,000 people in total. In fact, the bad loans ratio is kept under 5% according to the financial industry.
It has 15 companies as lenders that are multi finance and credit funds. Credit funds come from Hong Kong and SEA countries. BFI is still one of the exclusive lenders in Kredivo.
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Original article is in Indonesian, translated by Kristin Siagian
