Indonesia-based FinAccel bags US$30m in funding for Kredivo

Jakarta-based FinAccel has raised a US$30 million in Series B equity investment. This was led by Square Peg Capital, with participation from new investors such as Telkom’s MDI Ventures and Atami Capital, and existing investors Jungle Ventures, Openspace Ventures, GMO Venture Partners, Alpha JWC Ventures and 500 Startups.

In a statement, Akshay Garg, CEO of FinAccel said that the funds will be used to build new product lines, expand geographically and hire more talent. This is with the aim to become the preferred digital credit card for Millennials in Southeast Asia.

Kredivo is currently live as a digital credit payment method across Indonesian e-commerce merchants such as Tokopedia, Shopee, Bukalapak and Lazada, and more than 200 overall. In a statement, it said that it as credit scored nearly two million Indonesian consumers and helped e-commerce merchants increase sales and customer retention significantly. It added that 80% of its transactions in any month come from repeat customers.

Nicko Widjaja, CEO of MDI Ventures, a part of Telkom Indonesia, added that Kredivo is also the first lending-tech company in the company’s portfolio.

“With our participation, we hope to push more into under-served market segments while leveraging Kredivo’s key strengths around technology automation and fair pricing,” Widjaja said.

“[Kredivo] is helmed by high integrity, experienced founders, who are motivated to solve massive pain points for Indonesian merchants and consumers, and in doing so drive the growth of the overall economy,” Tushar Roy, partner at Square Peg Capital said.

“We are humbled to have such a high-quality set of investors support our vision of enabling faster, frictionless e-commerce payments and providing safe, low-cost financing in a transparent and efficient manner,” Garg added.