Singapore-based fintech startup FinAccel announced on Tuesday that it had raised US$90 million in an oversubscribed Series C funding round jointly led by Square Peg, a venture capital company with a focus on Series A and Series B funding rounds in the markets of Australia and Southeast Asia, and Asia Growth Fund, which is a joint venture fund between Mirae Asset Financial Group and Naver Corporation. Other participants of FinAccel’s Series C funding round include notable organizations and firms such as early growth venture capital fund Cathay Innovation, Mirae Asset Securities, telecommunications company Telkomsel Indonesia, corporate venture capital fund Singtel Innov8, Indonesia-South Korea joint fund Kejora-Intervest, DST Partners, and Reinventure, besides other companies and firms.
The US$90 million secured by the financial services company, which represents one of the largest funding rounds raised by a Southeast Asian fintech startup to date, will enable FinAccel to further accelerate its growth and expansion in Indonesia and the region of Southeast Asia by hiring high-quality talent, leveraging on growth opportunities and enlarging its arsenal of financial services and solutions that are committed to equipping customers and users in the region with sharp financial acumen capabilities. One of the startup’s goals is to expand their current user base to 10 million users over the next several years via its Kredivo app and other solutions and services. Other undertakings the startup have in mind include partnerships with banking institutions for joint ventures and the implementation of low-interest healthcare, Shariah and education loans.
The financial services company, which was selected as the number one fintech startup in Southeast Asia at the Singapore Fintech Festival in November 2018, already has a commanding presence among the majority of Indonesia’s top e-commerce merchants through its credit app, Kredivo. The digital credit card platform, which was launched in 2016, is the brainchild of serial entrepreneur Akshay Garg, who is also the co-founder and chief executive officer of FinAccel. Kredivo pioneered the “buy now, pay later” concept in Indonesia’s e-commerce space, which enabled a significant portion of the consumer base with restricted access to credit to purchase pricey items online by applying for instant credit and then paying back the amount due in instalments over a period of time. It has entered into strategic partnerships with the major e-commerce players in Southeast Asia, including Shopee, Lazada, and Indonesian unicorns Bukalapak and Tokopedia. FinAccel also launched Zero-click checkout in September, which was hailed by the company as the fastest and most seamless checkout transaction experience on e-commerce.
According to Akshay Garg, the financial services company is very enthused about having Mirae Asset Financial Group and Naver Corporation on board as they continue to grow and expand in Indonesia and beyond to new markets. Commenting further on the strategic partnership, Akshay added that the deep expertise and experience that both companies bring to the table in the consumer Internet and financial services space will help propel its credit app Kredivo forward.
On the partnership with FinAccel, Jikwang Chung, managing director of Mirae Asset Capital, said that they see the startup as one of the major players in the fintech space that are currently leading the charge in pioneering technology-driven advancements that are disrupting financial services.
The fintech startup, through its US$90 million Series C funding and new partnerships, is now well-equipped to further grow and expand in Indonesia and the region of Southeast Asia. FinAccel and their investor partners look forward to creating an expansive and comprehensive set of financial solutions and services that will provide millions of customers and users in Southeast Asia with a seamless, affordable and readily accessible financial experience.