Kredivo, an Indonesia-based digital credit platform, announced today it has secured a credit line funding of US$100 million from US-based investment company Victory Park Capital (VPC).
This credit line is the largest in Kredivo’s history and within the fintech industry in Southeast Asia, it said in a press note.
The funding also marks VPC’s inaugural investment into the Southeast Asian market.
Also Read: How fintech is making credit more accessible for Southeast Asian SMEs
The fintech startup will utilise the funds to develop and diversify its loan book, all of which comes from third-party funds.
Kredivo’s Co-founder, Umang Rustagi, said: “The large line of credit funding available through this facility will accelerate business scalability and realise our target of serving up to 10 million new users in the next few years.”
Gordon Watson, Partner at VPC, said: “Kredivo is able to demonstrate a unique combination of growth, market reach, risk management and financial inclusion in Indonesia, which is one of the most developed markets in the world.”
Operated by Singapore-based FinAccel, Kredivo provides instant credit financing to customers for purchases on e-commerce, offline and cash loans, processed based on real-time decisions. Users can buy now and pay later with low-interest rates.
The firm’s trading partners benefit from instant point-of-sale (PoS) funding with a 2-click checkout via Kredivo.
Its parent FinAccel is backed by Mirae Asset, Naver, Square Peg Capital, MDI Ventures, Jungle Ventures, as well as several other investors.
Also Read: P2P lending startup Modalku raises debt funding from Dutch VC firm to widen credit access in Indonesia
Given that credit card penetration remains at 3 per cent in Indonesia due to limitations of conventional financial institutions in distributing unsecured credit, Kredivo claims its services are able to bridge the credit gap within the archipelago.
Founded in 2007 and headquartered in Chicago, VPC invests in large companies as well as emerging business segments in various industries in the US and the world, which often lack access to traditional sources of capital.
A week ago, Investree, an Indonesia-based fintech lending platform, received a commitment of US$15 million from US-based Accial Capital to provide loans to small and medium enterprises (SMEs) in Indonesia. The two firms have been working closely with each other since 2017 and have been funding a sub-segment of Investree’s SME loan portfolio.
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