25/7/2018- Kredivo, an Indonesia fintech startup has announced that it is raising US$30 million in a Series B funding round led by Square Peg Capital, alongside with the participation of Atami Capital and MDI Ventures.
The round was also joined by existing investors including Jungle Ventures, Openspace Ventures, GMO Ventures, Alpha JWC, and 500 Startups.
Kredivo’s latest funding round exceeds the US$25 million Series B funding secured by Modalku earlier in April, and thus becomes the largest round raised by an Indonesian fintech firm this year.
Operated by fintech company FinAccel, Kredivo functions as a digital credit card and point-of-sale system. The platform enables consumers without a credit card to shop online on credit and pay later in installments.
Kredivo keeps their users credit-socred and offers various options for paying off their debt such as interest-free 30-day repayments and other low-cost installment plans. To date, the platform currently has credit-scored two million Indonesians.
“While SEA is one of the largest and most dynamic economies in the world today, financial services in the region lag behind their peer group,” said FinAccel CEO Akshay Garg, adding that less than 3 percent of Indonesia’s population has access to credit cards, with majority of online shoppers relying on bank transfer and cash on delivery.
Founded in 2016, Kredivo is now available on nearly all of the country’s top ten merchants including Tokopedia, Shoppe, Bukalapak, and Lazada, and more than 200 merchants overall. The startup has last raised an undisclosed sum in 2017 from Jungle Ventures and Openspace Ventures, which was formerly known as NSI Ventures.
Commenting on the deal, MDI Ventures CEO Nicko Widjaja said, “Kredivo is our first lending-tech company to strengthen our financial service portfolio. It is the market leader in Indonesia consumer lending with the most advanced credit scoring we’ve seen so far in the market.”
“With our participation, we hope to push more into the underserved segments of the market where we have access to multiple sources of credit that could use Kredivo’s technological advantage to help speed up the disbursement process,” Widjaja added.
Moving forward, the startup will use the funds to build new product lines, expand geographically, and hire more talent with the aim of becoming the preferred digital credit card for Southeast Asian millennials.