Getting a credit card can be difficult if the bank thinks your personal finances aren’t looking shipshape. For the roughly 70 percent of Southeast Asians who are “unbanked,” it can be close to impossible – which isn’t ideal in a region where online shopping is exploding in popularity.
It’s a problem that FinAccel is seeking to solve with Kredivo, its “digital credit card” and point-of-sale system.
The Jakarta-based startup has just raised US$30 million in a series B round led by Australia’s Square Peg Capital.
Kredivo allows users to “buy now, pay later” when shopping online. Users are credit-scored and approved, and are offered a variety of options for paying off the debt. These include interest-free 30-day repayments and other low-cost installment plans. Kredivo claims that it has credit-scored two million Indonesians.
It’s available as a payment method with around 200 merchants, including top regional ecommerce sites Bukalapak, Lazada, Shopee, and Tokopedia.
FinAccel CEO Akshay Garg said that the startup will use the funds to develop new products, make hires, and expand geographically “with the aim of becoming the preferred digital credit card for Southeast Asian millennials.”
Previous backers including 500 Startups, Alpha JWC Ventures, GMO Venture, Jungle Ventures, and Openspace Ventures also joined the round. MDI Ventures and Atami Capital came on board as new investors.
This is a developing story. Please check back for updates.
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