Indonesian fintech firm Kredivo closes $20m credit line

Jakarta-based fintech firm Kredivo and US-based venture debt firm Partners for Growth V (PFG) closed a credit line of up to US$20 million to fund loans for the startup’s borrowers in Indonesia.

Photo credit: Kredivo

Kredivo, a “digital credit card” and point-of-sale system created by FinAccel, provides its customers with instant credit financing for ecommerce, offline purchases, and personal loans. It is available as a payment option for regional ecommerce players such as Bukalapak, Lazada, Shopee, and Tokopedia.

“The credit line from PFG will be used to fund all the product lines that we have launched to date: ecommerce financing, personal loans, and offline,” said Kredivo commissioner Umang Rustagi. The company said the deal will also help further its growth, with its transaction value and loan book growing at 40% and 35%, respectively, every quarter in the past 18 months.

According to payments platform Ayden, bank penetration in Indonesia is under a quarter, with only about 15% of the population having been issued debit and credit cards. This lack of lending from banks has led to the growth of the digital lending industry in the country, Kredivo said.

Local ecommerce giant Bukalapak recently partnered with local peer-to-peer lending startups Amartha, Modalku, and PohonDana to provide loan facilities for vendors in its Mitra Bukalapak program.

Indonesian digital wallet Ovo, Grab’s payment partner in the country, acquired P2P lending startup Taralite around the same time to extend loans and credits to shoppers and merchants in its ecosystem.

Late last year, Gojek formed a strategic partnership with local P2P lenders Findaya, Dana Cita, and Aktivaku in a bid to strengthen its position in financial services. The ride-hailing firm also teamed up with Allianz and Bank Negara Indonesia to offer insurance and microloans, respectively, to driver partners and small businesses using its network.