Indonesia-based AI-powered credit analysis startup Sxored has secured funding from East Ventures.

The investment amount remains undisclosed.

The startup plans to use the funds to enhance its AI and machine learning capabilities, including intelligent OCR and tools for credit document processing, fraud detection, and property collateral evaluation.

Sxored was founded in June 2024 by Cyrill James Hardie, Ben Lawson, Wawan Budi Setyawan, Abdul Latif Munjiat, and Pras Indaryoko Abdilah.

The team had previously worked together on a fintech marketplace project that was acquired.

cr

🔗 Source: East Ventures

🧠 Food for thought

1️⃣ Indonesia’s financial inclusion boom creates fertile ground for AI-powered lending solutions

Indonesia’s remarkable financial inclusion growth—from 49% in 2014 to approximately 84% in 2023—has created a significant market opportunity for AI-driven financial services like Sxored 1.

This expansion, equivalent to adding “the population of Switzerland seven times to the banking system,” coincides with internet penetration reaching approximately 79% in 2024 and over 180 million smartphones in use throughout the country 1.

The Indonesian loan market reflects this momentum, reaching more than Rp170 trillion last year with projected compound annual growth rates of 11-13%, positioning the country as Southeast Asia’s top lending hub.

With major tech investments flowing into the country, including Microsoft’s $1.7 billion for cloud and AI infrastructure and NVIDIA’s $200 million AI center in Surakarta, Indonesia is developing the technological foundation needed to support advanced fintech innovation 23.

This convergence of financial inclusion, digital connectivity, and infrastructure investment creates an ideal environment for AI-powered lending platforms that can address longstanding inefficiencies in credit assessment.

2️⃣ Alternative data and AI address critical gaps in traditional credit assessment

The global alternative data market—which encompasses non-traditional information sources used for credit decisions—is projected to grow exponentially from approximately $11 billion in 2024 to $135.8 billion by 2030, reflecting a compound annual growth rate of 52.1% 4.