JAKARTA (TheInsiderStories) – Australian bank and financial services provider, Westpac – via its venture capital arm Reinventure – joining a US$90 million funding round for Indonesian consumers to buy online and pay later under the brand Kredivo, the company said on Tuesday (01/28). Reinventure’s investment marks its third into Asia’s fintech scene after snapping up stakes in Indian business Zest and Singapore-based co-living company Hmlet last year.
Previously, FinAccel, the parent of Kredivo, has raised $90 million in a Series C equity funding round to expand in Indonesia and the region. The round was jointly led by Asia Growth Fund (a joint venture between Mirae Asset and Naver) and Square Peg. This funding round brings the total capital raised by the company in 2019 alone to more than $200m, across both debt and equity, with the debt being provided by a consortium of lenders including banks and credit funds.
Kredivo provides Indonesians with instant credit financing with an interest-free 30-day payback option, or three, six and 12-month installments with a 2.95 percent monthly interest rate. The firm has provided more than 30 million loans since launching three years ago, plugging into a large, young population in a country that has just 0.07 credit cards per capita, Finextra reported.
“Access to credit is a huge problem for Indonesian millennials, and we are solving for it through convenience, transparency, and fairness,” said Akshay Garg, CEO of Kredivo.
This funding round, which has already closed, will further propel the tremendous momentum that the company has enjoyed in the past years, with a presence at the checkout of most of the top Indonesian e-commerce merchants and transaction value growing at 300 percent per annum accompanied by bank-like risk metrics.
Reinventure was the most active investor in Australia between 2015 and 2019. Australia saw over $1.4 billion raised by fintech companies in the country in 2019 across 38 deals, a new record, thanks to rising numbers of funding rounds above $100 million, according to data from the FinTech Global. Reinventure’s investment in Kredibo marks the Westpac-backed venture capital firm’s third in the region after snapping up stakes in Indian business Zest and Singapore-based co-living company Hmlet last year.
“We feel there will be things to come out of these markets that will actually leap-frog developed markets,” said Rohen Sood, partner, Reinventure.
Kredivo’ progress in Indonesia is very promising. Since inception just over 3 years ago, the fintech disbursed nearly 30 million loans and created one of the largest credit-based payment platforms for e-commerce in Indonesia. Two months ago, the fintech collaborated with PT Bank Permata Tbk to distribute loans worth Rp1 trillion. The distribution of credit lines is claimed to be one of the largest collaboration channeling ever undertaken by national banks through fintech entities to date.
Written by Lexy Nantu, Email: email@example.com