Jakarta-headquartered fintech firm, Kredivo, and Partners for Growth V (PFG) closed a debt line of up to US$20 million to fund loans for Kredivo’s borrowers in Indonesia.
This deal marks a significant milestone for both companies: for Kredivo, it’s the largest deal in the company’s history with an offshore (international) lender; for PFG, this represents one of their biggest deals in the Asia Pacific (APAC) and their first in Indonesia.
Kredivo, a digital credit platform for retail borrowers across Indonesia, provides its customers with instant credit financing for e-commerce, offline purchases, and personal loans. It is available as a payment option for regional e-commerce players such as Bukalapak, Lazada, Shopee, and Tokopedia.
This deal will help to drive the momentum that Kredivo has enjoyed for the past 18 months, where the transaction value and loan book has been growing at 40% and 35% per quarter, respectively.
The credit line from PFG will also be used to fund all the product lines under the firm like e-commerce financing, personal loans, and offline.
Indonesia is one of the top credit-starved countries in Asia, with only about 15% of the population having been issued debit and credit cards. This gap created by the banks has led to the growth of the digital lending industry within the country.