JAKARTA (TheInsiderStories) - Kredivo, a digital credit platform for retail borrowers across Indonesia and Victory Park Capital Advisors, LLC, a private credit specialist from United States, announced the closing of a committed debt facility of up to US$100 million. The lender will use the funds to grow and further diversify the funding of its loan book, all of which is third party generated.
Commenting on the closure, Umang Rustagi, co-founder of Kredivo, said, “We believe that the size and complexity of this facility represents major breakthroughs for Indonesia’ tech and FinTech ecosystem.”
While, Gordon Watson, partner at Victory, stated, “We look forward to our partnership with Kredivo. We are very pleased to anchor our first investment in this region with a business of this caliber and one that is deeply passionate about enabling low-cost access to credit to the mass market.”
Recently, Australian bank and financial services provider, Westpac – via its venture capital arm Reinventure – joining a $90 million funding round for the company. Reinventure’ investment marks its third into Asia’ FinTech scene after snapping up stakes in Indian business Zest and Singapore-based co-living company Hmlet in 2018.
Earlier, 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 $200 million.
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.
Kredivo’ progress in Indonesia is very promising. Since inception just over three years ago, the FinTech firm disbursed nearly 30 million loans and created one of the largest credit-based payment platforms for e-commerce in Indonesia.
Kredivo is operated by FinAccel, a Singapore headquartered financial technology company, and Victory invests in emerging and established businesses across various industries in the United States and abroad. The firm was founded in 2007 and is headquartered in Chicago.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
