Japan’s Credit Saison launches $55m fund for Southeast Asia, India

Japanese consumer finance company Credit Saison has launched Saison Capital, its international corporate venture capital arm with an initial allocation of up to US$55 million for equity investments in early-stage startups in Southeast Asia and India.

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According to a statement, Saison Capital will focus on founders that are building ecosystems that have the potential to distribute financial services to the underbanked. However, the company will also look at other verticals outside fintech.

While micro, small, and medium-sized businesses can contribute up to 60% of total employment and 40% of gross domestic product in emerging markets, 70% of all SMEs in these economies lack access to credit, constraining their ability to grow, the statement indicated, citing data from the World Bank.

It is also estimated that the global credit gap for formal and informal SMEs is up to US$2.6 trillion.

Saison Capital aims to invest in six to eight companies every year with an initial ticket size of up to US$1 million. The fund, which focuses on seed to series A startups, has already invested in Indonesian peer-to-peer lending platform Koinworks.

It said that its portfolio companies will become part of the Credit Saison ecosystem and will have access to partners across finance and technology players.

Credit Saison has invested in Grab and online cashback platform ShopBack. It has also been a limited partner to some prominent funds such as CyberAgent Ventures, East Ventures, Strive (formerly Gree Ventures), and Beenext.