Akulaku’s revenue rises but profits drop 50% in 2024

Akulaku, the Southeast Asian BNPL player, posted US$4.5 million in profits before tax and income expenses in 2024 – a 50% decrease compared to the previous year, according to its audited financial statement.

The Indonesia-based company logged the narrowing profits despite a 14% increase in revenue to US$53 million. However, total expenses outpaced this growth as the firm spent roughly 30% more in 2024.

Tech in Asia has reached out to Akulaku for comment.

Growing its loanbook appears to be a key strategy for the company. For one thing, consumer financing receivables ballooned by almost 42x to US$130.7 million.

In March 2024, Akulaku received a commitment of up to US$100 million in debt financing from HSBC Singapore. At the time, part of the new capital was earmarked for debt repayment.

The fundraising followed a US$200 million deal with Japan’s Mitsubishi UFJ Financial Group in December 2022.

Backed by Ant Group, Akulaku provides installment payment options to its users, offering virtual credit limits that can be used to purchase goods and services. It also offers personal loans directly to consumers through Asetku.

General and administrative expenses took the lion’s share of costs, with Akulaku spending US$24.7 million for that item alone. Interest and finance costs rose more than 5x to US$6.5 million as well.

Meanwhile, its provision for impairment losses grew by 49% in 2024 to US$12.7 million. This could signal an expected rise in non-performing loans.

Akulaku’s fundraise in March came amid a massive slowdown in capital influx to Southeast Asian buy now, pay later companies. Banks are also staking their claim in the BNPL space, with Indonesia’s bank-issued paylater credit increasing 43% year on year as of November last year.

Other than Indonesia, the firm operates in Malaysia, the Philippines, and Vietnam.

See also: Mapping the survivors of Southeast Asia’s BNPL funding drought