Indonesian digital credit platform Kredivo on Tuesday announced that it has closed a debt line of up to USD 100 million to fund loans for Indonesian businesses. Victory Park Capital Advisors, a Chicago-based private credit specialist, facilitated this round. It is Victory Park’s first investment in Indonesia.
“The large capital pool made available via this facility will enable the business to scale even further,” said Kredivo’s president director Umang Rustagi in a virtual press conference.
It is by far the largest credit line for Kredivo so far and compares to USD 20 million from last year. The platform plans to expand its product offerings, tapping into low-cost education and healthcare loans, along with productivity loans for small and medium businesses (SMEs). Rustagi added that those ideas are still in the early stages.
Less than 3% of Indonesia’s population is in possession of a credit card and less than 5% have access to unsecured credit from banks. Digital platforms such as Kredivo are filling the gap. “We plan to serve more than 10 million financially underserved customers in Indonesia in the next few years,” Rustagi said.
Owned and operated by Singapore-based FinAccel, Kredivo provides customers instant credit financing for e-commerce purchases and personal loans based on real-time decisions. The company supplies e-commerce merchants with instant point-of-sale (PoS) financing, with a simple 2-click purchase option.
In 2019, Kredivo raised USD 90 million through FinAccel in a Series C equity funding round co-led by Mirae Asset-Naver Asia Growth Fund and Square Peg. In October 2020, the firm acquired Swarna Niaga Finance, marking its embarkment into multi-financing services.