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VPC doubles Kredivo investment to $200 million
Kredivo has received another capital injection of US$100 million from Victory Park Capital Advisors to expand its business, making the US firm the largest investor in the Indonesian fintech lending start-up.
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Kredivo chief technology officer Alie Tan (second right) talks at a seminar about financial technology credit scoring in Jakarta on Feb. 20, 2020. (JP/Eisya Eloksa)
V
ictory Park Capital Advisors (VPC), headquartered in Chicago, has invested another US$100 million in Kredivo as the Indonesian fintech start-up looks to expand its base to 10 million users.
Following a $100 million initial investment in July 2020, the latest fund doubles VPC’s engagement to $200 million, making the firm the biggest investor in the Indonesian digital credit platform. The fund is also the biggest amount the firm has given to any fintech company outside the United States or Europe.
“The large capital pool made available via this facility increase will enable the business to scale further in 2021,” Kredivo Indonesia CEO Umang Rustagi said in a press release on Tuesday.
The local fintech lending industry has seen huge growth despite the economic downturn brought about by the coronavirus pandemic.
Total loans disbursed through fintech companies last year increased 91.30 percent to Rp 155.9 trillion (US$10.7 billion), according to a report published by the Financial Services Authority (OJK), while the companies’ total assets increased 22.23 percent annually to Rp 3.71 trillion.
However, the 90-day loan settlement rate (TKB90), which the OJK uses to assess lenders’ success in collecting loan repayments, decreased annually by 1.17 percentage points to 95.22 percent.
Meanwhile, Kredivo’s pay later feature has become increasingly popular according to a March survey by the Kredivo-Katadata Insight Center (KIC), which showed that 49 percent of the survey’s 3,560 respondents said they would increase their use of the payment option.
