This BNPL giant nears key digibank junction on IPO roadmap

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Krom Bank, FinAccel’s digibank unit, is set to hit the highly competitive Indonesian markets with a mobile app launch in the first half of 2023. The unicorn first marked its digital bank ambitions in 2021 when it took a stake in Bank Bisnis Internasional, a listed bank that targets SMEs and retail customers via the usual savings, time deposit, and loan products.

FinAccel’s journey to go public has been far from straightforward. Since suspending its IPO plans on US markets early last year, the company – best known for its buy now, pay later (BNPL) product Kredivo – has been steadily increasing its stake in Bank Bisnis and readying itself for another shot at getting listed.

In today’s featured piece, Tech in Asia discusses how FinAccel’s digital bank foray goes up against incumbents and larger rivals and whether it could boost its public listing, which could happen by 2024.

Today we look at:

• FinAccel’s business trifecta ahead of a potential IPO
• The US$18.7 million series A round of Ion Mobility, a Singapore-based EV startup
• Other newsy highlights such as Binance reentering South Korea and Indonesia’s CoHive being declared bankrupt

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While Indonesia’s digibank potential is undeniable, FinAccel will surely have its work cut out given the competitive market it’s set to enter. Click here to view the staggering number of firms that are vying for a slice of the lucrative pie.

FinAccel may be relatively late to the digital banking space, but it’s starting from the green right off the bat – Krom Bank was profitable in 2020 and 2021.

• Building blocks: As of April 2022, FinAccel owns a 75% stake in Bank Bisnis Internasional, which has since rebranded to Krom Bank. Recently, Krom Bank raised about US$60 million through a rights issue, fulfilling the new rule from Indonesia’s financial services authority that requires banks to have at least US$200 million in paid-up capital.
• The difference maker: The bank may differentiate itself by cross-selling its services to Kredivo’s existing customers – the young, affluent, and underbanked. If a service provider is able to cover a sizable portion of their financial needs, these users may contribute a higher average revenue per user than a mass market customer.
• One top dog for now: FinAccel also operates digital credit platform KrediFazz, but Kredivo remains the top product when it comes to engagement. According to third-party estimates, Kredivo’s mobile app hovers around 4 million to almost 5 million monthly active users in Indonesia over the past 12 months.

Read more: Can FinAccel’s digital bank boost its upcoming IPO?

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