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