Indonesia-based fintech startup Kredivo on Wednesday announced raising $30 million in a Series B funding round led by Square Peg Capital.
Other new backers in the round include MDI Ventures and Atami Capital, Kredivo revealed in an announcement. The round was also joined by return backers Jungle Ventures, Openspace Ventures, GMO Ventures, Alpha JWC and 500 Startups.
Kredivo’s latest funding round is the largest raised by an Indonesia-based fintech firm this year, exceeding the $25-million Series B funding secured by Modalku earlier in April. The startup also claims that the investment marks the largest Series B raised by a fintech company in Southeast Asia. This portal had also reported earlier that fintech startups UangTeman and Amartha are in talks to raise Series B rounds of around $20 million and $10 million, respectively.
Operated by fintech company FinAccel, Kredivo functions like a digital credit card, enabling consumers without a credit card to shop online on credit and pay later in instalments. Less than 3 per cent of Indonesia’s population has access to credit cards, with the vast majority of online shoppers relying on bank transfer and cash on delivery.
“While SEA is one of the largest and most dynamic economies in the world today, financial services in this region lag behind their peer group. We intend to use the new funds to build out new product lines, expand geographically and hire more talent with the aim of becoming the preferred digital credit card for SEA millennials,” said FinAccel CEO Akshay Garg.
Founded roughly two years ago, Kredivo says it has so far credit scored 2 million Indonesians. It is now available on nearly all of the country’s top ten merchants, including Tokopedia, Shopee, Bukalapak and Lazada, and more than 200 merchants overall.
“Kredivo is our first lending-tech company to strengthen our financial service portfolio. It is the market leader in Indonesia consumer lending with the most advanced credit scoring we’ve seen so far in the market. With our participation, we hope to push more into the underserved segments of the market where we have access to multiple sources of credit that could use Kredivo’s technological advantage to help speed up the disbursement process,” said MDI Ventures CEO Nicko Widjaja.
Kredivo had last raised an undisclosed sum in 2017 from Jungle Ventures and Openspace Ventures (formerly known as NSI Ventures). Prior to that, it had raised a seven-digit seed investment round in 2016 led by Jungle Ventures with participation from GMO Venture Partners, Alpha JWC Ventures, 500 Durians and 500 Tuktuks.