Photo credit: Akulaku
Indonesian fintech major Akulaku has been prohibited by the country’s Financial Services Authority (OJK) from continuing to offer its buy now, pay later services.
Akulaku has allegedly violated the supervisory obligations required by the government agency for BNPL offerings. The OJK is now asking the firm to adjust its business to comply with these rules.
Akulaku told Tech in Asia that its BNPL product has not been prohibited, but temporarily limited in its operation.
“Our primary focus during this phase is to ensure strict compliance with all regulations set forth by the Financial Services Authority,” it said. The company said it is confident it will fulfill the administrative obligations to the regulator as soon as possible.
In addition to BNPL, Akulaku’s services include virtual credit cards, wealth management, and digital banking through Bank Neo Commerce. In 2021, its annual revenue had more than doubled year on year to US$598 million, pushed by rising demand for its neobanking unit’s services.
Besides Indonesia, the fintech firm is present in Malaysia, the Philippines, and Vietnam. It recently partnered with Philippines-based Netbank to offer loan products in the country.
Founded in 2014, Akulaku has raised US$530 million in disclosed funding so far, according to Tech in Asia data. The Ant Financial-backed company most recently raised US$200 million from Japanese lender Mitsubishi UFJ Financial Group in December 2022.
See also: BNPL struggles amid global recession – except in Southeast Asia
Update (Oct. 25, 7 p.m. SGT): This article was updated to include a statement from Akulaku.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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