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How Kredivo, an Asian fintech company secured a Series D funding round of $270 million

Kredivo, a fintech company in Southeast Asia, raised $270 million in a Series D funding round. Mizuho Bank led the round with $125 million, and other returning investors participated. According to FLCQuangbinh, a finance news portal, Kredivo provides credit services to underbanked consumers in Indonesia and Vietnam.

The company has raised a total of $400 million and has debt facilities of nearly $1 billion. Kredivo’s CEO said the company’s valuation has increased 4-5 times in every valuation round historically. Kredivo drives 3-4% of total GMV for its top e-commerce merchants in Indonesia. The company intends to exceed the credit card population of Indonesia within the next year or two.

Kredivo, formerly known as FinAccel, is the parent company of Kredivo and Krom Bank Indonesia, a new neobank. Their goal has been to increase their user base since launching in 2016. To do this, they reviewed their user funnel and used UAC for Actions to optimize conversions. By following best practices for bidding and budgeting, they achieved a 14X increase in daily conversions and an 80% drop in Cost Per Acquisition (CPA). Overall, they improved their conversion rate by 30% and gained numerous new sign-ups.

Umang Rustagi, the CEO of Kredivo Indonesia, expressed the company’s commitment to providing fast, affordable, and widely accessible retail credit products. The newly introduced Infinite Card will enable Kredivo’s almost 5 million Indonesian customers to enjoy unlimited access to online transactions, similar to a credit card. Rustagi believes that the innovation will significantly reduce the gap between traditional credit card holders and Kredivo’s customers, who have limited credit access.

Navin Jain, the Country Manager for Mastercard Indonesia, expressed pride in the collaboration with Kredivo and BNI to bring Mastercard’s acceptance network to millions of consumers globally. Jain acknowledged Kredivo as a pioneer in providing financial access to new-to-credit consumers in Indonesia. The collaboration between Kredivo and Mastercard will allow consumers to use their purchasing power across various online platforms that accept Mastercard payment cards. The solutions will provide consumers with more options and encourage them to use digital payment methods, in line with the goals of Indonesia’s Financial Services Authority and the Central Bank.

Kredivo’s Infinite Card is seamlessly linked to a user’s Kredivo account, allowing transactions to be debited from the Kredivo credit limit, which can go up to IDR 30 million. Infinite Card’s interest rates are the same as Kredivo’s other products, which are 0% for 30 days and 3-month installments, and 2.6% per month for 6 and 12-month installments. Infinite Card is accepted at all online platforms that take credit card payments, and Kredivo plans to gradually introduce the Infinite Card to its customer base in the coming months.

The company’s products include buy now, pay later, personal loans, credit cards, and banking services through Krom. Krom’s services will launch this year with deposits and transaction banking.

Kredivo targets underbanked consumers who have access to bank accounts but little credit access due to poor credit bureau infrastructure. Kredivo mitigates risk by targeting employed customers with bank accounts instead of higher-risk consumers, which also lowers its credit costs. Daisuke Horiuchi, a Mizuho executive, said Kredivo has a “stellar track record” in promoting financial inclusion in Southeast Asia.

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