Indonesian fintech startup Payfazz is said to have closed the deal with B Capital Group to raise fresh capital, sources privy to the development told DealStreetAsia.
The size of the round is said to be in the region of over $20 million.
Existing investor Tiger Global is also believed to have topped up in this round.
“Some of the existing investors of Payfazz are also in talks to pour money in the round,” added one of the sources on the condition of anonymity.
A request for comment made to Payfazz, Tiger Global and B Capital had not elicited a response at the time of publishing this article.
Payfazz made headlines last year when it raised over $21 million from investors including Tiger Global Management and Yuri Milner’s DST Global. Its other investors include MDI Ventures, Insignia Ventures Partners and Magic Fund.
Established in June 2016, Payfazz became the first startup in the archipelago to make it to the Y Combinator accelerator programme in 2017.
Y Combinator startups receive a $120,000 investment but, more importantly, become part of a global network of experienced entrepreneurs and alumni. It counts global majors such as Airbnb, Dropbox and Twitch among its alum.
Targeting the unbanked who constitute about 66 per cent of Indonesia’s population, Payfazz vets offline agents to act as intermediaries between banks and potential customers. It claims to work with over a million mobile banking agents.
Users can deposit cash to these agents and receive a Payfazz balance that can be used to buy prepaid phone credit or pay for electricity and other bills. Its agents earn a cut for their services while PayFazz charges a 1 per cent fee per transaction.
B Capital typically seeks to plug the Series B to C gap, targeting ticket sizes of up to $20 million per company with scope for follow-on funding. It typically targets B2B startups in consumer enablement, financial services, and insurance, health and wellness, and industrial and transportation. Its portfolio companies include Ninja Van, Carro and CXA Group.
Tiger Global Management focuses on investments across a host of sectors spanning global internet, technology, telecom, media consumer and industrial, among others. Its investments typically have a ten-year horizon.