Owned Venture Capital Telkomsel Give its Initial Funding for Kredivo

Today (03/7) Telkomsel through the investment unit Telkomsel Innovation Partner (TMI) announced that it has provided new funding for FinAccel (Kredivo). The funding is also supported by MDI Ventures, which is an investment unit belonging to the Telkom Group. The details and nominal funding are not disclosed.

For information, the latest funding obtained Kredivo worth 435 billion Rupiah in the series B round, led by Square Peg Capital with the participation of MDI Ventures, Atami Capital, and former investors. Previously they had also received series A funding from a number of investors including Jungle Ventures, Alpha JWC Ventures, 500 Startups etc.

"Cooperation Telkomsel and Kredivo Not only aims to provide payment solutions, but at the same time to advance thousands of Indonesian retail entrepreneurs by providing alternative financial services that can reach a wider customer segment," TMI CEO Andi Kristianto.

MDI Ventures CEO Nicko Widjaja said, "There are a number of collaborations and synergies that we have identified that are capable of generating great benefits for Telkomsel and FinAccel. This cooperation is very beneficial because both parties can 'go-to-market' together, reach out to customers Telkomsel and provide them with significant value-added services."

The TMI initiative was announced in May 2019. A total of $40 million (equivalent to 576 billion Rupiah) is prepared to be invested in a number of startups operating in Indonesia. In this initiative, Telkomsel partnered with MDI Ventures and Singtel Innov8. Initially, the granting of funds will be focused on startups in the big data, IoT, and the entertainment industry.

Kredivo itself comes with innovations that fit in the middle of the momentum E-commerce in Indonesia. The service offers “virtual credit cards” for various shopping needs. Regarding market penetration, currently they only serve users in Greater Jakarta, Bandung, Surabaya, Semarang, Palembang, Medan, Bali, Yogyakarta, and Solo.

The loan duration is 30 days, 3 months, 6 months and 1 year. The interest per month applied reaches 2,95%. Currently platform Kredivo already implemented in almost all E-commerce major operating in Indonesia. Not long ago, the company founded by Akshay Garg, Alie Tan, and Umang Rustagi also launched a new product in the form of cash loan.

Previously, it was rumored that they wanted to inject new funding for Kredivo is his longtime investor in the series A round, namely Jungle Venture with a value of almost 2,5 trillion Rupiah. However, it seems that this has not been realized so far.