Southeast Asia’s funding environment is still wintery, but a fintech has landed a major round. Kredivo Holdings, which provides credit services to unbanked consumers in Indonesia and Vietnam, has raised $270 million in what it claims to be a high volume of Series D applications.
The round was led by Japanese bank Mizuho Bank, a subsidiary of Mizuho Financial Group, contributing $125 million. Repeaters such as Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners and Openspace Ventures also participated.
The company has now raised approximately $400 million in total equity and has committed approximately $1 billion of debt to expand its credit line.
Kredivo CEO Akshay Garg declined to disclose Kredivo’s current valuation, but told TechCrunch that it has increased 4x to 5x “in every valuation round to date.” I’m here. He added that Kredivo currently drives his 3% to 4% of the total GMV of Indonesia’s top e-commerce merchants, compared to his 15% to 20% for credit cards.
The company was about to go public last year in a $2.5 billion SPAC deal, but pulled it out, citing unfavorable market conditions. Garg said he has no plans to revive the SPAC and that Kredivo “would like to remain private for the time being” and will evaluate listing options later.
When asked how many active users Kredivo has, Garg said the approved user base is “currently in the same range as the credit card population in Indonesia and we plan to exceed it in the next year or two.” rice field. According to Bank Indonesia, about 15 million to 16 million credit cards are in circulation, but according to Kredivo research, most credit card holders have unique card ownership because he has two. about half that number.
The founding team of Kredivo. Image credit: Credivo
Kredivo, formerly known as FinAccel, is the parent company of Kredivo and its new neo-bank, Krom Bank Indonesia. The company’s products include online and offline buy now, pay later, personal loans, credit cards and banking services with Krom.
“Neobanking is highly synergistic with the existing Kredivo business and, given the scale of unbanked and unbanked users in Indonesia, offers a tremendous business opportunity in itself. says Garg. Krom’s services will begin this year in deposit and transaction banking, pending final regulatory approval.
Kredivo is also building products like open loop credit cards. This includes Infinite Card, a virtual card partnership with Mastercard and his Flexicard for offline cards, through direct partnerships with online and offline merchants.
Kredivo’s target audience is consumers who don’t have adequate bank accounts, or credit bureau infrastructure is poor and traditional banks are reluctant to provide unsecured credit. People who have access but little credit access. Instead of relying solely on traditional credit bureaus, Kredivo assesses the creditworthiness of potential consumers through data sources such as telecommunications companies, e-commerce accounts and bank accounts.
Another way Kredivo reduces risk (and lowers the cost of credit) is by targeting high-risk consumers and, in turn, lowering their bank accounts compared to competitors who charge higher interest rates. Targeting white-collar workers in urban areas with
Kredivo’s direct and indirect competitors include Akulaku’s BNPL and Bank Neo Commerce (the fintech recently raised a large sum of money from a major Japanese bank), Advance.ai’s Atome BNPL service, Kredit Pintar Cash loans, Sea Group’s Sea Money, etc.
In a statement on the investment, Mizuho Group Executive Officer Deputy Head of Retail and Business Banking Company said: Maintain bank-like risk metrics and build a capital efficient business model. ”
