Digital payment platform FinAccel raises US$90m in Series C funding

SINGAPORE-BASED consumer credit startup FinAccel on Tuesday said it has raised US$90 million in an oversubscribed Series C equity funding round, bringing the total capital raised across both debt and equity by the fintech startup in 2019 to US$200 million.

The latest round was jointly led by Square Peg and Asia Growth Fund - a joint venture between Mirae Asset and Naver, with participation from Singtel Innov8, TMI (Telkomsel Indonesia), Cathay Innovation, Kejora Intervest, Mirae Asset Securities, Reinventure, DST Partners and others.

Indonesia-focused FinAccel, which houses "buy online and pay later" digital payments platform Kredivo, said that the funds raised will allow it to "double down on growth in the region, hire talent and expand its range of financial services".

The startup is aiming to tap into markets in the Philippines, Thailand and Vietnam, and launch products such as healthcare, low-interest education and shariah loans.

Kredivo, says co-founder and chief executive Akshay Garg, sits at the intersection between financial services and consumer Internet. The digital payments platform is similar to a credit card in which consumers can use Kredivo for instant credit financing for amounts ranging from US$35 to US$2,200 through various e-commerce sites for purchases or for personal loans. Kredivo offers a 30-day payback option, but has charges on interest for its three-, six- and 12-month payback windows.

The startup currently finances more than one million customers in Indonesia, and is hoping to increase this number to 10 million in the region by 2024.

To determine the credit scores of users, FinAccel uses different markers provided by mobile, e-commerce and telecommunications companies to help gauge the financial capabilities of those living in underbanked and underserved regions. Through its proprietary credit-scoring techniques, Mr Garg says, the fintech startup will be able to tap the 70-million strong emerging middle-class bracket in Indonesia to provide "fast, affordable and widely accessible financial services".

The startup has already seen its transaction value grow more than 300 per cent per annum, it said in a press release. Mr Garg declined to state exact figures, but noted that the platform's transaction value ranks it among the top four payments services in Indonesia.

Tushar Roy, a partner at Square Peg, said: "It is rare to find such a strongly values-led and culture-focused company in the region that is also experiencing tremendous growth while improving the financial services ecosystem."