Southeast Asian fintech company Akulaku has acquired an 8.9 per cent stake in Indonesian lender Bank Yudha Bhakti for Rp 158 billion ($11 million), according to local media reports.
The stake in the local bank, which is classed as BUKU I or the lowest category of banks in terms of core capital, was bought from existing shareholder Gozco Capital, which previously owned a 42.16 per cent stake in the bank.
After the investment by Akulaku, Gozco remains the controlling shareholder of the bank with a 33.26 per cent stake. Other shareholders are Asabri (23.89 per cent) and Akulaku (8.9 per cent), while the rest of the shares are publicly owned.
Akulaku said it will be looking to make a total investment of Rp 500 billion ($35 million) into Bank Yudha, which will be carried out in stages. The first stage will see the bank launching a rights issue in May, in which Akulaku will act as a standby buyer.
According to Bank Yudha Bhakti executive director Denny Novisar Mahmuradi, having Akulaku as a shareholder will help the bank in its push toward digital transformation. The deal gives Akulaku access to financial services that are restricted to conventional banks.
Established in 2016, Akulaku is an online consumer finance platform focused on Indonesia and the rest of Southeast Asia. It was one of the first Chinese financial technology companies to go to Southeast Asia.
The company, which counts Ant Financial as one of its backers, started with a virtual credit card and then began to build its own e-commerce platform. Its platform largely offers 3C products, with self-operated mobile phones, as well as home appliances, clothing, toys, beauty products.
The investment in Bank Yudha Bhakti is the latest in a string of aggressive moves by the company, which raised a $70 million Series C funding round in October last year.
Over the past year, Akulaku has launched a P2P arm called Asetku, which connects lenders to borrowers. It also teamed up with e-commerce firm Bukalapak to launch BukaCicilan which allows Bukalapak to allow customers to pay in instalments for the purchases they make on Bukalapak by firstly registering on the Akulaku platform.
Akulaku, which says it facilitated as much as Rp 9.8 trillion worth of credit last year and aims to triple that this year, is reportedly in the process of raising $100 million in a Series D funding round.