Kredivo Receives $ 100 Million for BNPL in Indonesia In
The digital credit and credit platform Kredivo has raised $ 100 million in an expanded credit facility, the Indonesian FinTech announced in a press release on Monday (June 21).
Kredivo will use the funds to provide consumer credit to its Indonesian borrowers. In addition to offering personal loans, the startup also offers consumers Buy Now, Pay Later (BNPL) solutions for online and offline purchases.
The startup offers “financial inclusion in one of the most exciting emerging markets in the world,” said Gordon Watson, partner at Chicago-based Victory Park Capital (VPC), in the press release. This credit facility is VPC’s largest credit facility for a FinTech outside the US and Europe.
The funding raises Kredivo’s entire credit facility, which originally closed last July, to $ 200 million, the startup’s largest credit facility to date. It’s also one of the largest unsecured loan asset-backed securities transactions in Indonesia, according to the release notes, as most of the unsecured loan offerings in Indonesia are available through peer-to-peer lending platforms.
“The large pool of capital made available by this addition to the facility will enable the company to continue growing in 2021 and beyond, bringing us closer to our goal of serving up to 10 million customers in Indonesia over the next few years “Said Umang Rustagi, CEO of Kredivo Indonesia, said in the press release.
Kredivo grew in 2020, a not surprising trend for a company in the BNPL industry. The popularity of BNPL continues to grow worldwide, as PYMNTS previously reported. Its use in emerging markets follows its popularity with consumers who do not own or do not qualify for credit cards. BNPL can also be a viable way to responsibly budget and build credit, Sezzle’s chief technology officer Killian Bracky recently told PYMNTS.