Fintech company Kredivo Holdings raised about US$270 million ($385.2 million) in equity financing, defying a market correction that’s made it difficult for many startups to obtain fresh capital.

The Singapore-based firm, formerly known as FinAccel Pte and operator of fintech platform Kredivo and Krom Bank Indonesia, struck a deal for financing led by Mizuho Financial Group Inc., it said in a statement Thursday without disclosing its valuation. Existing investors including Square Peg Capital, Jungle Ventures and Naver Corp. also participated in the Series D round.

The fundraising shows that some startups are still finding capital even as the venture industry grapples with rising interest rates, elevated inflation and a tech downturn. Investors, once thrilled to write checks, are becoming more choosy and are doling out less favourable terms. Kredivo’s round is the biggest announced in Asia since Silicon Valley Bank’s collapse shocked the startup ecosystem earlier this month.

Last year, Kredivo sought funding at a US$1.5 billion pre-money valuation after its planned merger with a blank cheque company collapsed. Prior to that, it had reached a valuation of about US$2 billion.

The company, whose services include buy now, pay later financing, will use the funds to build up its presence in offline stores and expand into Indonesia’s highly competitive digital banking space, Abhijay Sethia, head of strategy at Kredivo, said in an interview.

The region’s fintech players are aggressively expanding their suite of financial service products in Indonesia, a country of about 273 million people where many have limited access to bank accounts and credit cards. Kredivo has offered consumer loans and payments for seven years, giving it an advantage against competitors from industries such as e-commerce, ride-hailing and gaming, Sethia said.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/fintech/how-fintech-startup-went-global-people-focused-payments?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>How a fintech startup went global with people-focused payments</a></b></span>

“What Indonesians need at this point of time is access to credit, which is what they’ve severely lacked for years,” he said.

Kredivo’s peer, Ant Group Co.-backed Akulaku Inc., has a stake in Jakarta-based Bank Neo Commerce while Singapore’s Sea Ltd. acquired Bank BKE in 2021 to gain a foothold in the fintech arena.

Ride-hailing and food-delivery platform Grab Holdings Ltd. teamed up with Singapore Telecommunications Ltd. to buy a minority stake in Bank Fama — now Super Bank Indonesia — while rival Gojek in 2021 spent about US$160 million to raise its holding in PT Bank Jago.

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