Mirae Asset Capital is going to invest close to $21 million in this round, said one of the sources mentioned above.
The exact amount of capital raised in the round is unconfirmed but sources say it is likely to be more than $50 million and could reach up to $100 million. In an email to media houses last week, Kredivo had said that its next funding round will be the largest Series C round for a fintech company in Southeast Asia.
The Jakarta-based company had organized a media event this week to announce the Series C round but the conference was deferred due to undisclosed reasons.
In its response to our query for this story, Kredivo said it does not comment on market speculation. Mirae Asset Capital, meanwhile, did not immediately respond to an email.
Redpeak Advisor, the Singapore-based boutique advisory firm, is running the fundraising process, two of the sources said.
Kredivo plans to use the fresh funding to grow its business in Indonesia and support its expansion into the Philippines, one of the sources added. The startup has previously revealed plans to enter the Philippines market before the year-end.
Operated by fintech company FinAccel, Kredivo functions like a digital credit card, enabling consumers without a credit card to shop online and pay later in instalments.
It has so far focused on tapping the Indonesian market, which is known to be one of the most credit-starved countries in Asia. Less than 3 per cent of the country’s population owns a credit card and less than 5 per cent have access to unsecured credit from banks.
Kredivo had last year raised $30 million in a Series B funding round led by Square Peg Capital. The round was joined by MDI Capital and Atami Capital, as well as existing backers 500 Startups, Alpha JWC Ventures, GMO Venture, Jungle Ventures, and Openspace Ventures.
In July this year, the company secured unspecified funding from existing investors Telkomsel Mitra Inovasi (TMI), the venture arm of network provider Telkomsel, and MDI Ventures. This was followed by debt financing of up to $20 million from venture debt firm Partners for Growth in September.
In offering its digital credit services, Kredivo sees stern competition from Sequoia-backed Akulaku, which raised a Series C funding round of $70 million late last year and is understood to be in the market to raise a new round of $100 million.
Mirae Asset Capital counts Indonesian e-commerce company Bukalapak and regional ride-hailing decacorn Grab among its portfolio companies.