Singapore-based fintech startup AsiaKredit has raised an undisclosed amount of funding from technology investment firm SIG Asia Investments, bringing its aggregate funding to $2.5 million since its launch in November 2017.
In a statement, the startup said the funds will be used for loan capital, to enhance its proprietary technology platform, underwriting, and collections infrastructure, as well as to develop new products.
AsiaKredit also added that the investment is a bridge round between pre-Series A and Series A. The startup had last raised $675,000 in a combined pre-Series A and seed funding round backed by Fintonia Group and FORUM.
Founded in 2017, AsiaKredit operates a consumer lending mobile application called pera247 in the Philippines, which provides unsecured small-ticket, short-term consumer loans for up to 90 days to the country’s underbanked population with no existing credit or collateral history.
The startup claims to have processed over 100,000 loan applications six months after its launch and is seeing over 100 per cent customer growth each month, with over 50 per cent of them being repeat customers. It is also looking to expand its service to other Southeast Asian markets.
“We are thrilled to have SIG on board. SIG has a proven track record in identifying winners in this space, having invested early in digital lenders that have later listed on NASDAQ and in companies at the forefront of alternative credit scoring in Asia.
“Although we currently focus on short-term loans on the higher end of the risk spectrum, we plan to move into longer duration, lower risk products such as personal instalment loans in the next six to 12 months,” said AsiaKredit co-founder and CEO Michael Singh.