Kredivo will use the funds to extend consumer loans to its Indonesian borrowers. In addition to offering personal loans, the startup also offers buy now, pay later (BNPL) solutions to consumers for both online and offline purchases.
The startup provides “financial inclusion in one of the most exciting emerging markets in the world,” Gordon Watson, partner at the Chicago-based Victory Park Capital (VPC), said in the release. This debt facility marks VPC’s largest to a FinTech outside of the U.S. and Europe.
The funding lifts Kredivo’s total debt facility, which initially closed last July, to $200 million, the startup’s largest loan facility to date. It’s also one of the largest asset-backed securities transactions for unsecured credit in Indonesia, the release notes, as most unsecured credit offerings in Indonesia are available through peer-to-peer loan platforms.
“The large capital pool made available via this facility increase will enable the business to scale further in 2021 and beyond, and get us closer to our goal of serving up to 10 million customers in Indonesia over the next few years,” Umang Rustagi, CEO of Kredivo Indonesia, said in the release.
Kredivo grew throughout 2020, an unsurprising trend for a firm in the BNPL industry. BNPL’s popularity continues to climb around the globe, as PYMNTS has previously reported. Its use in emerging markets follow its popularity among consumers who don’t have or don’t qualify for credit cards. BNPL can also be a viable way to budget responsibly and build credit, Sezzle Chief Technology Officer Killian Brackey told PYMNTS recently.