Kredivo Bags Series C Funding, Valuation Updates to 7 Trillion Rupiah

Kredivo announced Series C funding worth of $90 million (over 1.2 trillion Rupiah) led by Mirae Asset-Naver Asia Growth Fund and Square Peg. This act brings the company's valuation nearly $500 million (around 7 trillion Rupiah). It's expected to hit 10 million users in the next few years.

Mirae Asset-Naver Asia Growth Fund is a joint venture of Mirae Asset Financial Group with Naver Corporation. Both are Korean-based companies. Some of the Indonesian-based portfolios namely Bukalapak, Grab, HappyFresh, RedDoorz, and The Asian Parent.

In the official statement, the round is said to be closed and over-subscribed. Other investors who participated in this Series C round are Singtel Innov8, TMI, Cathay Innovation, Kejora, Intervest, Mirae Asset Securities, Reinventure, DST Partners, and many more.

During 2019, the company has raised fresh funding in total, either debt or equity, over $200 million (around 2.8 trillion Rupiah). In terms of debt, it comes in the form of a consortium lender consists of banks and credit funds. One of which is Bank Permata, channeling 1 trillion Rupiah to re-distribute by Kredivo.

"We're very excited knowing the investors involved are having the same vision to build a series of financial services that is rapid, competitive, and accessible to millions of users in the region," Kredivo's CEO, Akshay Garg said on Tue (12/3).

Square Peg Partner, Tushar Roy said the company is fascinated by Kredivo's growth since the first investment last year. "It's not common to find a company driven by value and culture-centric in this region, they can further develop while improving the financial service ecosystem."

Since it was founded three years ago, the company is claimed to process more than 3 million submissions and distribute around 30 million loans. The achievement is considered as one of the biggest numbers in the lending platform and Indonesia's e-commerce.

In the previous year, the number of merchants and transaction value arose over 300% year on year. The result was also backed by increasing risk management metrics equivalent to banks.

Akshay also said the fresh money is to be used to double up the growth by expansion to new locations, not only Indonesia but also Southeast Asia, and for talent acquisition.

Soon, some new products are to launch, including the low-interest loan for education and health, the sharia-based loan in partnership with the financial institutions. Kredivo also presents as a partner of PayLater LinkAja which is to be launched this month.

–Original article is in Indonesian, translated by Kristin Siagian