Singapore-based FinAccel, a Fintech firm that allows Indonesian consumers to purchase items online and make payments later under the Kredivo brand, has secured $90 million via a Series C equity funding round. The funds will be used to expand the firm’s operations in Indonesia.
According to a release, FinAccel’s investment round was led by Asia Growth Fund, a joint initiative between Mirae Asset and Naver, and Square Peg. The latest round brings the total funds raised by the firm this year to over $200 million, which includes both equity and debt and financing. The debt has been provided by a group of lending institutions including banks and credit funds.
This investment round, which has now been closed, will help the company further grow and develop its products and services. As explained in the announcement, the company has “a presence at the checkout of most of the [major] Indonesian ecommerce merchants and transaction value growing at more than 300% per annum accompanied by bank-like risk metrics.”
FinAccel intends to use the capital acquired to recruit new talent, and further expand its range of financial services “dedicated to creating a generation of financially savvy customers in Indonesia and the rest of Southeast Asia.”
Singtel Innov8, TMI (Telkomsel Indonesia), Cathay Innovation, Kejora Intervest, Mirae Asset Securities, Reinventure, and DST Partners also took part in the over-subscribed Series C round.
Akshay Garg, CEO at FinAccel, stated:
“We are very excited to have Mirae Asset and Naver join our growth journey. These … companies bring … domain expertise in financial services and consumer internet, Kredivo sits at the intersection of both areas. Additionally, we are very pleased that our incoming investors share in our vision of building a wide set of financial services that are fast, affordable and accessible for millions of customers in the region.”
Jikwang Chung, managing director at Mirae Asset Capital, the investment division of Mirae Asset, noted:
“Today, we are witnessing the rapid advancement of technology-led disruption of financial services and we see FinAccel as one of the leading companies in this area.”
Tushar Roy, partner at Square Peg, remarked:
“We have been really impressed with the team’s progress since we invested last year, and it was an easy decision to support strongly again. It is rare to find such a strongly values-led and culture-focused company in the region that is also experiencing [steady] growth while improving the financial services ecosystem.”
Following its launch over three years ago, FinAccel has examined over three million applications, issued almost 30 million loans and developed one of Indonesia’s largest e-commerce, credit-based payment platforms.
As noted in the release:
“Aligned with the Indonesian government’s goals around increasing access to financial services for the country’s vast and fast growing middle class, FinAccel aims to serve 10 million users in the next few years through Kredivo and other financial services. Near-term plans include the rollout of low-interest education, healthcare and Shariah loans and partnerships with banks for joint product development.”