AsiaKredit, the Singapore-headquartered fintech startup behind Philippine digital lender service pera247, today announced that it has raised a funding round led by SIG Asia Investments.
Though the amount is undisclosed, the company said in a press statement that it has raised a total of US$2.5 million to date after the investment round.
AsiaKredit plans to use the funding for loan capital, to enhance its proprietary technology platform and underwriting and collections infrastructure, and develop new products.
It also aims to expand its business to Indonesia in early 2019.
“We are thrilled to have SIG on board. SIG has a proven track record in identifying winners in this space, having invested early in digital lenders that have later listed on NASDAQ and in companies at the forefront of alternative credit scoring in Asia. pera247 further endeavors to capitalise on the portfolio relationships within SIG’s many other companies invested in the region. We are delighted that SIG shares our vision of building AsiaKredit into a leading Southeast Asian digital lender,” said AsiaKredit CEO and Co-Founder Michael Singh.
“Although we currently focus on short-term loans on the higher end of the risk spectrum, we plan to move into longer duration, lower risk products such as personal installment loans in the next six to 12 months,” he added.
Launched in November 2017, through pera247, AsiaKredit provides unsecured small-ticket, short-term consumer loans for up to 90 days to the over 80 million unbanked and underbanked in the country with limited or no banking history. Customers have the option to withdraw funds and make payments through over 10,000 cash centers.
The company said that within six months of its launch, it has processed over 100,000 loan applications, and is seeing over 100 per cent customer growth each month, with over 50 per cent repeat customers.
The startup raised its seed and pre-Series A funding round from fintech venture builder FORUM, early stage fintech investor Fintonia Group, as well as Reliance Indonesia Group and Space Ventures.