Fazz Raises IDR 1,4 Trillion Funding, Seriously Working on Financial Innovation for Business

fazz, rebrand from Fazz Financial Group, announced the acquisition of funds worth $100 million (over 1,4 trillion Rupiah) in a series C round. The company's confirmed figure is greater than news DailySocial.id previously $60 million.

The company will use this fresh fund to develop financial products to reach all business segments, from micro to large corporates.

The series C round consisted of equity funding of $75 million and debt of $25 million. This equity funding line is supported by Fazz's previous investors, such as Tiger Global, DST Investment, B Capital, Insignia Ventures Partners, and ACE & Company.

Other investors participating in this funding include Ilham Ltd (which is linked to sovereign wealth funds in the Southeast Asia region), EDBI, InterVest, Michael Seibel (Managing Director Y Combinator) and Hans Tung (Managing Partner of GGV Capital).

Meanwhile, facilities debt this bagged one was obtained from reliable which has been signed by the company in the provision sheet (term sheet) worth $25 million.

In an official statement delivered today (14/9), Co-Founder & CEO Fazz Hendra Kwik said, this additional fund will be used to build Fazz, a business account that allows businesses of various scales - from micro, small and medium enterprises ( MSMEs) to Fortune 500 companies – to make payments, storage and credit easy in Southeast Asia.

Thus, Fazz's ambition in accelerating digital transformation in Southeast Asia can be realized immediately. To support this, Fazz will expand their team in Singapore, Indonesia, Malaysia, Vietnam and Taiwan from more than 800 people to 1.400 people.

According to Hendra, many businesses in Southeast Asia still do not have full access to financial services and some of them have been badly affected by the pandemic. Fazz stepped in to help them recover and grow back stronger.

“We are investing heavily in technology in our business to ensure that all businesses, from small family-owned shops to large corporations, can access financial services to build their businesses,” he said.

He continued, “Another important thing is that we want to provide the same benefits as large companies have to small businesses and shop owners. This funding allows us to build on the advantages of the technology for our users.”

Tiger Global partner Alex Cook also delivered his remarks. He said, Fazz provides important financial tools for businesses in Southeast Asia considering that many of them do not yet have easy access to digital payments, treasury functions, and capital growth.

“The Fazz platform has been adopted rapidly by small businesses and large corporations, and we look forward to continuing our partnership with Fazz,” said Cook.

Fazz Achievements

Hendra continued, this investment was obtained from Fazz's recent success. The company claims to have recorded a record annual transaction volume of $10 billion over the past year. He is also optimistic that he can double his transaction volume in the next 12 months.

Fazz consists of Fazz Agen, an agent-based financial application that serves micro and small businesses in Indonesia by providing easy access to payments, wholesale purchases and equitable capital. Next, Fazz Business, rebrand from Xfers, a business account to help startups, MSMEs and large growing companies.

Fazz Businesss will help businesses build, operate and grow their businesses in Southeast Asia by providing the ability to make and receive payments, develop capital and raise funding.

Apart from Fazz Agen and Fazz Business, Fazz also has other business units, consisting of Modal Rakyat – Peer-to-Peer funding services and loans for MSMEs, and StraitsX – payment infrastructure for digital assets.

Changes in the business world during the pandemic have placed MSMEs at a greater disadvantage due to lack of access to capital, technology, and connections. Lack of access to technology tools and equitable bank funding are key challenges for MSMEs in Southeast Asia, with the funding gap currently at US$300 billion.

It is hoped that Fazz will help MSMEs more easily access financial tools that can help them streamline processes, expand their reach, improve their supply chains and most importantly, get the funding they need to grow.