ImpactAlpha, December 4 – FinAccel’s mission is to improve financial inclusion across Southeast Asia’s “vast and fast growing middle class”. Its starting point is Indonesia, where most of the country’s 265 million people lack access to formal financial services but do have a cell phone.
Deep mobile penetration is driving the popularity of alternative credit and lending products, like FinAccel’s credit-based payment platform Kredivo. Kredivo lends online shoppers as little as $100 for their purchases. There’s no fee for complete repayments made within 30 days; customers can also opt for low-interest installment loans of up to 12 months.
The company says it has disbursed 30 million loans, with its recent expansion into personal lending.
FinAccel’s funding injection will allow it to expand into other product lines, including low-interest education finance, healthcare finance and Shariah-compliant loans. Asia Growth Fund, a Korean growth-stage venture fund, and Australia-based Square Peg backed the $90 million Series C round.
Indonesia’s Amartha recently raised $18 million for its peer-to-peer microlending platform for entrepreneurs. Jakarta-based Julo, which offers low-interest, short-term personal loans, raised a $10 million Series A round in September. Last year, Oriente, a digital finance company launched by Skype co-founder Geoffrey Prentice, raised $105 million to expand its low-cost credit services in the Philippines, Indonesia and elsewhere.