PayLater Fintech Startup EmpatKali Is Acquired by Similar Service, to Expand Payment Segment
Afterpay also acquired similar service, Pagantis to enter European market
Marsya Nabila - 1 September 2020
The fintech lending startup EmpatKali is entirely acquired by a similar player from Australia, Afterpay. This corporate action also marks the official entry of Afterpay to Indonesia, as one of the countries on their list.
In DailySocial's interview with EmpatKali's CEO Jamie Camidge, he said he could not reveal the value of this transaction. However, he confirmed that Afterpay LTD had acquired the shareholder of PT Empat Kali Indonesia, effectively taking over the controlling interest in EmpatKali.
In terms of management, it is also certain that there is no change in structure, such as placing Afterpay representatives into the company internals. “Afterpay requires existing directors to continue to build businesses in the future. We are very excited to continue to lead this business through the next stage of growth,” he explained, Monday (8/31).
The interest of Afterpay with EmpatKali is supported by the similarities of each other's business. Both of them do not take service fees charged to consumers as interest, but rather charge merchants in the form of commissions for every transaction using EmpatKali as a payment method.
“We think this model is much more attractive to consumers because it is interest-free for up to 90 days. This approach is quite unique and in our opinion, suitable for Indonesian consumers, especially those who want to avoid usury. "
Afterpay was founded in 2014 and is one of the leading players in the world with 10 million active users, majorly coming from Australia and the United States. Afterpay takes interest in Indonesia, apart from having lucrative potential, of course as more expansive business development through EmpatKali.
Not only EmpatKali, but Afterpay also acquired similar companies in the target country, such as Pagantis which based in Europe.
Camidge continued, the company will continue to innovate with features and services to reach more merchants in the future. When you look at the official website, the company has partnered with more than 100 local merchants engaged in fashion and accessories.
The company focuses on supporting premium local brands, such as Brodo, Aleza, and Deuce ex Machina that design, build and sell their own products. "These small and medium-sized partners are truly world-class and have the added value of generating economy across their supply chains in Indonesia."
For the next step, he admitted that EmpatKali would form partnerships with international brands. Then expand the installment segment for medical, dental, insurance, aviation, hotel, and gadget needs.
“We really believe in focus. We want to be preferred by Indonesians to pay for their favorite goods without interest. "
Regarding the impact of the pandemic, he admitted that the company gains quite a positive impact. As sales have now shifted from offline to online stores, growth has remained stable. Unfortunately, Camidge is reluctant to back up his statement with numbers.
"We have been monitoring our loss rate and are now adjusting our risk machine to ensure risk management is maintained because we want to grow in a sustainable manner," he concluded.
–Original article is in Indonesian, translated by Kristin Siagian