Indonesia’s Kredivo closes up to $100m debt facility

Kredivo announced the closing of a committed debt facility of up to US$100 million with US-based private credit firm Victory Park Capital Advisors for the startup’s consumer loans business in Indonesia.

The deal, which marks the largest credit line secured by Kredivo so far, represents Victory Park’s first transaction in Indonesia and Southeast Asia overall, according to a statement.

The Kredivo team / Photo credit: FinAccel

Kredivo plans to use the funds to grow and diversify the funding of its loan book, all of which is third-party generated.

“The large capital pool made available via this facility will enable the business to scale even further and get us closer to our goal of serving up to 10 million customers in Indonesia over the next few years,” said Kredivo co-founder Umang Rustagi.

Operated by Singapore-headquartered fintech firm FinAccel, Kredivo is a digital credit platform that gives underbanked Indonesians access to instant credit financing for both online and offline purchases, as well as personal loans.

Kredivo supports payment transactions for regional ecommerce players such as Tokopedia, Bukalapak, and Shopee.

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Late last year, the company raised US$90 million in series C funding in a round led by Square Peg Capital and the Asia Growth Fund (a joint venture between Korea’s Mirae Asset and Line parent Naver). The company’s reported valuation at the time stood at US$500 million.

Kredivo competes with companies such as Akulaku, which is backed by Ant Financial, and Hong Kong-based Oriente, a startup co-founded by Skype co-founder Geoffrey Prentice that also operates in the Philippines.