Indonesian peer-to-peer (P2P) lending startup Akseleran is in talks to raise up to $20 million in its Series B round, with the participation of its existing investor Beenext, said a top company executive.
Negotiations are at an advanced stage and the round is likely to be finalised by the first quarter of this year, Akseleran co-founder and CEO Ivan Nikolas Tambunan told DealStreetAsia.
Towards the end of 2020, a year laced with uncertainty due to the COVID-19 crisis, the company garnered funding from its existing investor Central Capital Ventura in a bridge round, added Tambunan. He, however, declined to disclose the deal size.
“The new round raised will be used to support our growth, expand our team and develop technology,” said Tambunan.
Launched in October 2017, Akseleran began as a fintech startup, implementing an equity crowdfunding business model. It later pivoted to a P2P lending firm to comply with regulations set by the Indonesian Financial Services Authority (OJK).
Despite the adverse impacts of the pandemic, the company claims to have disbursed loans worth around $70 million last year, 35% higher than 2019. This year, the company has set a target to disburse loans worth $143 million.
Going forward, Akseleran plans to get listed over the next few years. “After Series B, we should be able to get to cashflow positive this year. We want to ensure our long-term sustainability and hopefully, do an IPO in the next 2-3 years” said Ivan.
Akseleran leverages machine learning technology to read the pattern of its borrowers by verifying the accuracy of their financial statements. It focuses on cash flow-based lending and primarily provides working capital loans in the form of invoice and contract financing.
The company also has a mobile application called Auto-Invest through which lenders can determine the loan criteria such as duration of the loan and interest rates to cut down the time and hassle of selecting loan proposals from borrowers.
Akseleran raised as much as $8.55 million in its Series A round in 2019 led by Beenext with the participation of other investors namely CCV, Access Ventures and Agaeti Ventures.
In 2020 it secured a loan worth $70 million from Bank BCA, Bank Mandiri and J Trust Bank, besides various multi-finance companies such as Credit Saison, Kredit Plus, and Mandiri Tunas Finance.
Over the past few years, the country’s crowded P2P space has evinced significant investment interest from risk capital investors. Among startups that have raised capital are Modalku, Koinworks and Investree.