Singapore Fintech Kredivo raises Asia’s largest fundraise since SVB’s Fall

• ByStartupStory     |    March 23, 2023

Despite the challenging market conditions that have made it tough for many startups to secure funding, Kredivo Holdings, a Singapore-based fintech company that operates Kredivo and Krom Bank Indonesia, has managed to raise approximately $270 million in equity financing. 

Mizuho Financial Group Inc. led the financing, which was part of the Series D funding round, and existing investors such as Square Peg Capital, Jungle Ventures, and Naver Corp. also participated. The company did not disclose its valuation in the statement released on Thursday.

The challenges faced by the venture industry, such as increased interest rates, high inflation, and a technology market downturn, Kredivo Holdings has managed to secure funding, indicating that some startups are still able to raise capital. Investors are now being more selective and offering less favourable terms than before. Kredivo’s recent funding round is the largest to be announced in Asia since Silicon Valley Bank’s recent collapse, which sent shockwaves throughout the startup ecosystem.

Kredivo had aimed for a pre-money valuation of $1.5 billion last year following the collapse of its proposed merger with a blank check company. Prior to that, the company had attained a valuation of approximately $2 billion.

 

“The Singapore-based firm provides services such as buy now, pay later financing, and plans to utilise the funds it has raised to expand its offline store presence and venture into Indonesia’s fiercely competitive digital banking market”, according to Abhijay Sethia, Kredivo’s head of strategy, in an interview.

Fintech companies in the region are rapidly expanding their range of financial services in Indonesia, a country with a population of roughly 273 million, where many individuals have limited access to bank accounts and credit cards. Kredivo has been providing consumer loans and payment services for seven years, giving it an edge over competitors from other sectors like e-commerce, ride-hailing, and gaming, according to Abhijay Sethia.

He added that “access to credit is currently a pressing need for many Indonesians, as they have lacked this facility for an extended period of time”.

Kredivo’s competitor, Akulaku Inc., which is backed by Ant Group Co., holds a stake in Bank Neo Commerce based in Jakarta. Meanwhile, Singapore’s Sea Ltd. acquired Bank BKE in 2021 to establish a presence in the fintech sector. 

Other players, such as ride-hailing and food-delivery firm Grab Holdings Ltd. and Singapore Telecommunications Ltd., jointly purchased a minority stake in Bank Fama, now known as Super Bank Indonesia. Additionally, Gojek spent approximately $160 million in 2021 to increase its stake in PT Bank Jago, another rival company.

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