Update: More details on the company’s expansion plan and fundraising advice
Jakarta-based fintech startup FinAccel today announced that it has raised a US$30 million Series B funding round led by Square Peg Capital, with participation from new investors MDI Ventures and Atami Capital.
Existing investors Jungle Ventures, Openspace Ventures, GMO Venture Partners, Alpha JWC Ventures, and 500 Startups also participated in the funding round.
This funding round followed an undisclosed Series A funding round the company has announced in October 2017, co-lead by NSI Ventures and Jungle Ventures.
In a press statement, FinAccel CEO Akshay Garg said that the company plans to use the new fund to “build out new product lines, expand geographically, and hire more talent with the aim of becoming the preferred digital credit card for SEA millennials.”
“Both location and timelines are undecided right now. It will be in SEA and in early 2019,” Garg later clarified in an email to e27.
FinAccel is the company behind Kredivo, an alternative check-out and digital credit payment method for e-commerce platforms. The service enables customers from cash-dependent markets to earn and improve their credit score without having to own credit cards.
The startup said that the service is already live on more than 200 online merchants including Tokopedia, Shopee, Bukalapak, and Lazada. It also claimed to have 80 per cent of its transaction in “any month” coming in from repeat customers.
As a fintech startup, security is also one thing that FinAccel pays attention to.
“Security comes down to two things: strong process compliance and secure systems. On either one, we are extremely deliberate and thoughtful in the way we go about using data. To date, we’ve never had a data breach and the way we use customer data for credit scoring and collections is no different from how a regulated MFC or bank would. Those are the standards that we hold ourselves to,” Garg explained.
He also shared the secret behind the company’s fundraising success: Strong distribution, strong retention and engagement numbers, and strong risk management.
“In two years, we’re live on eight of the top 10 Indonesian e-commerce merchants, including all of the top five … Eighty per cent of transactions coming in any month come from existing users (not new ones), and our users transact on average around 30 times per year,” he said.
“Our NPL’s are in line with those of a top 10 Indonesian bank. It’s these factors that have lead top investors to double down on our business,” he closed.
Image Credit: FinAccel