December 7, 2019 News Magazine

Kredivo’s parent firm FinAccel raises $90M to expand its credit lending platform in Southeast Asia

Singapore-headquartered FinAccel has secured $90 million in what is the largest funding round for a fintech startup in Southeast Asia as it looks to further grow its credit lending app Kredivo and build more financial services.

The financing round, dubbed Series C, for the three-and-a-half-year-old startup was jointly led by Asia Growth Fund — a joint venture between Mirae Asset and Naver — and Square Peg.

Singtel Innov8, TMI (Telkomsel Indonesia), Cathay Innovation, Kejora Intervest, Mirae Asset Securities, Reinventure, and DST Partners participated in the “oversubscribed” financing round, the startup said.

FinAccel said it has raised more than $200 million in debt and equity this year itself. It has raised $140 million in equity to date.

FinAccel operates credit lending app Kredivo in Indonesia, where it has amassed more than a million customers and is growing by a whopping 300% each year, Akshay Garg, chief executive of FinAccel, told TechCrunch in an interview.

The app enables customers to secure credit between $100 and $2,200. If a customer pays it back in full in a month, FinAccel does not charge them any fee. Else, the service levies an interest rate of 2.95%, he explained.

Kredivo’s payments option is also integrated with a number of e-commerce firms including Lazada and Shoppe and food delivery startups in Indonesia, so users can quickly access the credit to purchase things and pay the app later.

Credit lending apps are increasingly gaining popularity across the globe, but especially in Southeast Asian markets where the penetration of credit card remains low — hence there are very few people with a traditional credit score. This has created an opportunity for startups to look at other metrics to determine who should get a loan.

FinAccel’s team poses for a picture

Garg said Kredivo looks at a range of data points including the kind of smartphone model a customer is using, and the apps they have installed on it. “Basically what we’re doing is almost like creating a user profile about the user using a combination of different data signals that come from the existing credit bureaus, the telcos, the e-commerce accounts, the bank accounts, and the users themselves,” he said.

“All of that creates a 360-degree overview of the customer that helps us determine the risk factors and decide whether to issue the credit,” he added. As of today, Kredivo is only approving about one-third of the applications it receives.

Jikwang Chung, Managing Director of Mirae Asset Capital, the strategic investment arm of Mirae Asset, said in a statement that FinAccel is one of the leading companies in Southeast Asia that is able to “combine a strong technology DNA with top-tier risk management and a bold vision of financial inclusion.”

FinAccel, which works with banks to finance the credit to customers, has evaluated more than 3 million applications to date and disbursed nearly 30 million loans. Garg said the startup is now working to develop more financial services such as low-interest education and healthcare loans.

In the next three to four years, it aims to grow to 10 million users and expand to other Southeast Asian markets such as Philippines.

A handful of other startups also operate in this space in Indonesia. C88, which also offers credit to customers, last year raised $28 million in a financing round led by Experian.


Source: TechCrunch

Tags: in Uncategorized
Banner
Related Posts

Nvidia announces its Studio line of laptops to compete against the MacBook Pro

May 27, 2019

May 27, 2019

During its press conference in Taipei a day before Computex starts, Nvidia announced a new line of laptops that will...

This robot relies on human reflexes to keep its balance

October 30, 2019

October 30, 2019

As much as we’d like to think that we’re entering an era of autonomous robots, they’re actually still pretty helpless....

Riding the RV revolution, Outdoorsy fuels up with $50 million in fresh funding

January 15, 2019

January 15, 2019

Outdoorsy is building for the road ahead. The three-year-old company, which connects customers with underused RVs and other trucks big...

Google Cloud challenges AWS with new open-source integrations

April 9, 2019

April 9, 2019

Google today announced that it has partnered with a number of top open-source data management and analytics companies to integrate...

Lenovo Smart Clock review

June 3, 2019

June 3, 2019

Before it got into the smart screen market with the Nest (nee Home) Hub, Google opted to let its hardware...

Researchers ran a simulator to teach this robot dog to roll over

January 17, 2019

January 17, 2019

Advanced robots are expensive, and teaching them can be incredibly time consuming. With the proper simulation, however, roboticists can train...

An Xbox controller with a built-in braille display is Microsoft’s latest gaming accessibility play

May 6, 2019

May 6, 2019

Microsoft has been leaning into accessibility in gaming lately, most visibly with its amazing Adaptive Controller, and a new patent...

How young VCs bootstrap new venture firms

August 12, 2019

August 12, 2019

We spend a lot of time talking about new funds, and new startup venture raises, but we spend little time...

Here is BMW’s new electric motorcycle concept

June 25, 2019

June 25, 2019

BMW has a long history of building motorcycles, but it hasn’t done all that well in the electric motorcycle department....

Reality Check: The marvel of computer vision technology in today’s camera-based AR systems

May 15, 2019

May 15, 2019

Alex Chuang Contributor Alex Chuang is the Managing Partner of Shape Immersive, a boutique studio that helps enterprise and brands...

Google Cloud makes it easier to set up continuous delivery with Spinnaker

July 22, 2019

July 22, 2019

Google Cloud today announced Spinnaker for Google Cloud Platform, a new solution that makes it easier to install and run...

Is that supplement safe to take? This AI tool scours research to find out

September 19, 2019

September 19, 2019

Dietary supplements are used by millions who accept the occasionally scarce evidence they help out with some condition or another....

Disney’s cringe-worthy Baby Yoda merch goes on sale

November 26, 2019

November 26, 2019

Who could have guessed an adorable, big-eyed baby Star Wars alien would have generated a ton of demand for toys?...

Newly launched pet health startup Gallant wants you to bank your dog’s stem cells for $990

October 24, 2019

October 24, 2019

With $11 million in funding and a mission to open up the doors of regenerative therapies to dogs across the...

Powerbeats Pro are the Bluetooth earbuds to beat

May 17, 2019

May 17, 2019

Let’s get the bad out of the way first, shall we? For starters, that charging case is huge. There’s no...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *