Skorlife Raises IDR 59,5 Billion in Initial Funding Led by Hummingbird Ventures

Credit score checking startup Skorlife today (24/05) announced an early stage funding of $4 million or more than IDR 59,5 billion led by Hummingbird Ventures. Also participating in this round were new investors QED Investors, as well as former investors AC Ventures and Saison Capital.

It is planned that Skorlife will use the newly obtained fresh funds to develop products, expand the team, increase market penetration, and encourage the company's growth in general. PreviousIn September 32,8, the company had announced the acquisition of funds for the pre-initial stage of more than IDR 2022 billion.

Founded by leading veterans of the local technology ecosystem, Ongki Kurniawan and Karan Khetan, SkorLife offers credit building for individuals to access and monitor their credit scores and reports and other related data from credit bureaus instantly and for free.

As one of the service pioneers credit builder in Indonesia, Skorlife tries to address the problem of limited access to fair credit in Indonesia by providing credit education, tools to improve credit, and promoting responsible lending.

SkorLife Co-founder and President Karan Khetan explained, "With the funds we have secured, SkorLife is ready to accelerate its mission of promoting responsible lending and fair credit practices in Indonesia. We are committed to encouraging financial literacy among individuals and communities."

Skorlife revealed that Indonesia has a market opportunity of up to $185 billion which will continue to grow. However, citizens of these countries still have limited access to fair credit due to the market's limited knowledge of how credit functions, and how to be responsible borrowers.

The company claims that when people have a clearer understanding of their credit profile, they will strive to acquire the knowledge and skills necessary to improve their creditworthiness and financial reputation. This will give them access to fairer credit opportunities, as well as benefit society in general in the long term.

AC Ventures Founder and Managing Partner Adrian Li added, "SkorLife is revolutionizing the Indonesian market by addressing the real problem of financial inequality, and AC Ventures is proud to be an early investor and generational partner of this company. Through its mission to bring financial justice and freedom to the market, SkorLife is opening a path to a more inclusive and prosperous future for all Indonesian people."

Credit scoring services in Indonesia

In Indonesia, there are several ways you can check your credit score. First, the Credit Information Management Institute (LPIP) as a Conventional Credit Bureau. Apart from that, you can go through BI Checking, which has now changed to Debtor Information (iDEB) or Financial Information Service System (SLIK).

The data used here is mainly sourced from bank databases or other financial institutions. However, as the service develops fintech In Indonesia, the banking industry is also starting to open up to utilizing alternative data sources to expand its reach to segments of society unbankable and MSMEs.

That way, organizers fintech through the Innovative Credit Scoring (ICS) business model, it also tries to provide a similar solution by utilizing alternative data sources that are not limited to bank accounts. For example, online shopping data, telecommunications data, as well as track records on social media can be alternative sources.

Regarding regulations, the Financial Services Authority (OJK) has created a special cluster called Innovative Credit Scoring (ICS) as the organizer of Digital Financial Innovation (IKD). As of May 2023, there are already 20 companies listed in the cluster credit scoring. Skorlife is currently still listed in the cluster financial planner.

Several score checking services that also operate in Indonesia include IdFintechScore which AFPI and PEFINDO launched, services CredoLab that utilizes mobile device metadata, Tokoscore which is affiliated with Tokopedia, a subsidiary of Investree, AIForeseeand Ascore. ai provided by the Amartha P2P Lending service.