Kredivo gets US$20M debt funding to provide low-cost loans to retail borrowers in Indonesia

, an online lending platform for across Indonesia, has closed a USS$20 million debt funding round with Partners for Growth (PFG), a venture debt firm with offices in the US and Australia.

The partnership is structured in the form of a credit line where Kredivo will be able to access up to US$20 million of debt, on-demand.

Kredivo will use the funds to diversify its loan book, currently predominantly domestically originated. 

This deal comes two months after Kredivo secured an undisclosed sum in equity funding from Telkomsel‘s venture arm Telkomsel Mitra Inovasi (TMI) and MDI Ventures.

Owned and operated by Jakarta-based FinAccel, Kredivo gives customers instant credit financing for e-commerce purchases and personal loans based on the real-time decision. For e-commerce merchants, Kredivo enables instant Point of Sale (PoS) financing with a unique and simple 2-click purchase option that makes buying a joy!

The online lending startup claims that in the past 18 months, its transaction value and loan book have been growing at 40 per cent and 35 per quarter, respectively.

Umang Rustagi, Commissioner of Kredivo, said: “The credit line from PFG will be used to fund all the product lines that we have launched to date: e-commerce financing, personal loans and offline.”

Jason Georgatos, Partner at PFG, said, “Kredivo is one of the lowest cost lenders in the market and has one of the best risk metrics that we have come across, yet it is also one of the fastest-growing.”

Indonesia is one of the most credit-starved countries in Asia, with less than three per cent of its population having a credit card and less than five per cent having access to unsecured credit from banks. The gap has led to the growth of the digital lending industry, which is filling the gap opened up by the lack of lending from banks from other traditional financial institutions. P2P lending models primarily fuels the industry.

In July 2018, Kredivo raised US$30 million Series B led by Square Peg Capital, with participation from new investors MDI Ventures and Atami Capital. Before this round, in October 2017, the firm secured undisclosed Series A funding, co-lead by NSI Ventures and Jungle Ventures.


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