SINGAPORE (Dec 3): FinAccel Pte, which extends credit to online shoppers in Indonesia under the Kredivo brand, has raised US$90 million ($123 million) of expansion capital in a fundraising round valuing the company at almost US$500 million.
South Korea’s Mirae Asset-Naver Asia Growth Fund and Australian venture capital firm Square Peg co-led the Series C financing, according to FinAccel Chief Executive Officer Akshay Garg. Other backers joining the round included Singtel Innov8, Telkomsel Indonesia, Cathay Innovation and Kejora Intervest.
Kredivo allows online shoppers to apply for a loan through a mobile app and get approval in minutes if they qualify. The app uses customers’ personal data and machine learning technologies to determine eligibility. Similar to credit cards, Kredivo starts charging interest on credit it extends to customers after 30 days, though its rate is a higher 2.95% per month, or more than 40% annually, for a revolving loan.
