Indonesia Loans App Gets $100 Million to Tap Asia Shopping Boom
(Bloomberg) -- Indonesian digital lender Kredivo secured another $100 million in debt financing from Victory Park Capital Advisors LLC, seeking to accelerate consumer loans during an online-shopping boom.
The deal brings the total loan facility from Victory Park to $200 million and marks the Chicago-based fund’s largest debt commitment to a fintech firm outside the U.S. and Europe, according to an emailed statement from the companies. They closed an initial debt facility of up to $100 million last year.
Kredivo lets Indonesia’s online shoppers “buy now and pay later,” an option gaining popularity in a market where people have limited access to credit cards. The startup plans to use the additional capital to expand in Indonesia and enter new markets in Southeast Asia, where online stores are rapidly winning over shoppers.
“We intend to be in markets such as Vietnam and Thailand before the end of this year,” Akshay Garg, chief executive officer of Singapore-based FinAccel Pte, which operates Kredivo, said in an interview. “We plan to partner with consumer finance businesses to launch ‘buy now, pay later’ in those markets.”
Kredivo was started in 2016 to let consumers apply for loans through a mobile app, with those qualifying getting approval in minutes. Since last year, it has focused on the “buy now, pay later” business, Garg said. Similar to credit cards, Kredivo starts charging interest after 30 days.
The firm has 5 million customers and has given a credit score to 15 million Indonesians so far, according to Garg. FinAccel’s backers include Mirae Asset, Naver Corp., MDI Ventures and Jungle Ventures.
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