Experian backs personal finance marketplaces CekAja and eCompareMo with $28m injection

Experian’s backing is expected to improve C88’s ability to serve ‘underbanked’ Southeast Asians with little or no credit history. / Photo credit: fbxx / 123RF

Online financial services marketplaces CekAja and eCompareMo are about to get a major upgrade.

Their parent company C88 Financial Technologies has just raised US$28 million in a series C round led by global credit-scoring giant Experian.

In addition to growth capital, Experian’s strategic investment will see it partner with C88 to implement its demand generation, analytics, and digital on-boarding tech directly on Indonesia’s CekAja and the Philippines’ eCompareMo. Along with the embedded software, C88 will also be able to tap into Experian’s partner distribution network.

UK-based Experian said in a statement that this will enable C88’s platforms to better match consumers with the third-party financial products they offer, which include credit cards, loans, and insurance plans.

See: CekAja helps Indonesians compare and apply for financial products, delivers the service to their front doors

Banks and other financial services providers that sell products through C88’s sites will get access to Experian’s credit-scoring solutions, allowing them to approve loan and credit card applications more effectively.

In particular, Experian’s tech is expected to improve C88’s ability to serve “underbanked” customers with little or no credit history. According to some estimates, more than two-thirds of Southeast Asians lack a bank account, illustrating the challenge faced by comparison sites like CekAja and eCompareMo and the third-party financial services providers they work with.

Credit where credit’s due

Investors are increasingly keen on the opportunity presented by Asia Pacific’s vast underbanked population. Last week, Jakarta-based FinAccel bagged US$30 million from backers including Square Peg Capital and 500 Startups for Kredivo, its digital credit card aimed at Indonesia’s young and growing horde of online shoppers.

Experian itself has made several inroads in the wider region. It is an investor in Vietnam’s MobiVi, which offers a range of digital payments solutions – such as online payment kiosks in shopping malls – that are tailored to consumers who prefer cash and lack credit history.

The credit-scoring firm also led a US$30 million series D investment in Indian financial products marketplace BankBazaar, gaining a 10 percent stake in the startup. Amazon, Fidelity International, and Sequoia Capital are among the other big names to have backed BankBazaar.

See: Financial comparison startup C88 speeds up car financing push with acquisition

Other investors in C88’s series C round included DEG, FengHe Fund Management, Fuchsia Venture Capital, InterVest, Pelago Capital, and ResponsAbility Investments. Previous backers Kejora Ventures, Kickstart Ventures, Monk’s Hill Ventures, and Telstra Ventures also participated.

C88 closed its series B funding round in late 2016.