Kredivo Holdings, which specializes in providing lending services to low-income consumers in Indonesia and Vietnam, announced the attraction of investment funds for $270 million following the results of the Series D financing round.

Source: Pixabay.com

This round was led by the Japanese bank Mizuho Bank, a subsidiary of Mizuho Financial Group, which contributed $ 125 million. Returning investors such as Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners, and Openspace Ventures also took part in the procedure.

As of now, the company has raised a total of about $400 million of equity. The firm also borrowed almost $1 billion to increase its loan portfolio.

Kredivo CEO Akshay Garg does not report the current value of the company but says that this figure increases 4-5 times after each round of financing. The firm provides 3-4% of the total GMV for its leading e-commerce sellers in Indonesia.

Last year, the company could have gone public under the $2.5 billion SPAC deal, but refused this agreement, citing unfavorable market conditions as the reason for the decision. Akshay Garg said that the possibility of resuming the deal is not currently being considered.

Kredivo’s line of offers includes online and offline Buy Now, Pay Later, personal loans, credit cards, and banking services through Krom.

Akshay Garg says that neobanking is very closely connected with the Kredivo business and in itself offers very great opportunities given the number of users in Indonesia.

Kredivo is also developing a product similar to an open-loop credit card, which includes an Infinite Card, a partnership with a virtual Mastercard card, and a stand-alone Flexicard card.

The target audience of Kredivo is consumers with insufficient financing or customers who do not have full access to loans due to the low level of development of the relevant infrastructure and the reluctance of banks to offer unsecured lending. The company evaluates the creditworthiness of consumers using data sources such as telecommunications companies, e-commerce accounts, and bank accounts.

Daisuke Horiuchi, executive director of Mizuho GAroup, and deputy head of the retail and commercial banking division said that Kredivo has a brilliant track record in Southeast Asia and maintains risk indicators similar to banking. He also noted that the company has an effective business model.

As we have reported earlier, Bank of London Scores $40 Million Series C Extension.