FinAccel, a Singapore-based credit risk scoring and consumer lending startup, has raised a seven-digit seed investment round led by Jungle Ventures with participation from GMO Venture Partners, AlphaJWC Ventures, 500 Durians and 500 Tuktuks.
Several notable angels such as Amar Goel (Komli/PubMatic) Prashant Kirtane (TravelMob), Jerry Yeu and Mathieu Harding (Hawksburn Capital) also participated in the round.
The startup will use the funding to reinvent credit scoring and digital lending in Southeast Asia.
Founded by Akshay Garg, Umang Rustagi and Alie Tan, FinAccel has developed a real-time credit risk engine that powers Kredivo Buy now, Pay later, a two-click payment method that enables e-commerce buyers in Southeast Asia to get instant access to short-term financing for their purchases.
“We are initially focused on e-commerce financing for buyers but the vision behind the company is much larger. By bringing a data-driven approach to credit scoring that looks at more than a thousand variables in real time, we are going after an unprecedented opportunity that will help unlock access to credit to tens of millions of eligible borrowers in a fully automated way, not just directly through us but via third parties who lend using our platform,” FinAccel CEO Akshay Garg said in a statement.
For nearly six months, FinAccel has been working on its credit risk model and product proposition. It’s Kredivo Buy now, Pay later product, now in public Beta, removes friction from e-commerce checkout by decoupling payment from the checkout.
“High cart abandonment due to payment friction is a fact of life we have been dealing with. Kredivo reduces that friction for us. With Kredivo, we are seeing 50% higher frequency and 25% larger ticket size compared to other payment methods,” said Sepulsa.com CEO Ananto Wibisono, a launch partner of Kredivo.
“We believe FinAccel has the opportunity to solve one of the biggest problems plaguing growth of e-commerce in Southeast Asia. We are very excited to partner with this extraordinary team in creating a leading credit risk scoring and consumer lending company here,” said Amit Anand, founding partner at Jungle Ventures, and the lead investor in this round.