Indonesian online financial services startup, Akulaku, is investing IDR 500 billion (US$35.4 Million) into a local banking institution, Bank Yudha Bhakti (BYB). The startup plans to complete this investment in three stages until the end of the year.
For the first stage, Akulaku plans to acquire shares from Gozco Capital, BYB’s controlling shareholder, with a transaction value of IDR 158 billion (US$11.8 Million). This value is equivalent to 8.95 % of Gozco’s BYB shares.
Akulaku was established in 2016, and it started out as a virtual credit card that let users purchase products and pay for them in installments. Subsequently, it began to build its e-commerce platform and diversify its suite of financial services.
In a recent Indonesia Startup Report, Akulaku is regarded as one of Indonesia’s next unicorns with a current valuation of close to US$500 million. Other notable investors of the fintech startup are Sequoia Capital India, Qiming Venture Partners, as well as Blue Sky Private Equity. Akulaku also recently secured a US$100 million series D round led by Ant Financial from China.
This investment will also enable the bank to adopt technology from Akulaku into its business as part of its digital transformation plans. It also has plans on using the investment to expand its sectors beyond individuals and towards micro, small, and medium enterprises (MSMEs). This investment will empower Akulaku with legal benefits to have access to some financial services and data sources which are currently restricted to only institutions with a full banking license.
