Kredivo Book “Debt Funding” 1,4 Trillion Rupiah from Victory Park Capital

Startups fintech digital credit Kredivo announce funding debt up to $100 million (equivalent to 1,4 trillion Rupiah) from an investment company from the United States, Victory Park Capital Advisors (VPC). Facility debt will be used for the development of financing products to serve 10 million new users in the next few years.

It is claimed that this funding is the largest in the company's history, as well as the largest in the industry fintech throughout Southeast Asia. It also marks the debut of VPC in the Southeast Asian market.

In today's virtual press conference (24/11), the Co-Founder Kredivo Umang Rustagi explained that these funds can boost the company's growth momentum and strengthen the risk matrix, in the midst of challenging economic conditions.

He said, the process of raising debt this has been started since six to nine months ago, but only closed in the third quarter yesterday. "Funding this line of credit will accelerate business scalability and realize our target to serve up to 10 million new users in the next few years," he said.

VPC partner Gordon Watson also gave his statement through an official statement. He said, Kredivo able to demonstrate a unique combination of enterprise, market reach, risk management, and financial inclusion in Indonesia.

"This collaboration is the first VPC investment in the Southeast Asia region, of course it is a very exciting thing to be able to start this important chapter with businesses Kredivo. "

Umang said, with his current position sebagai finance, no longer as a startup lending, has developed various financing products more freely to reach more new consumers. The product is like financing healthcare, education, and productive business for SME entrepreneurs.

"Development of other products, such as automotive financing will certainly be in the plan, but not in the near future."

VPCs are a number of institutional lenders who have entered into financing loans in Indonesia Kredivo, previously existed Permata Bank worth IDR 1 trillion and Partners for Growth worth IDR 283 billion. Both entered last year.

In addition to seeking funding from institutions to channel financing, Kredivo actually also have the opportunity to take advantage of other options that have been approved by the OJK, namely: channeling and issue bonds. However, Umang emphasized that so far there are no plans to issue bonds.

VP Marketing & Communications Kredivo Indina Andamari added, transfer to finance is part of Kredivo to be able to serve more consumers by diversifying financing products. From the point of view of trust Actioncalendar and consumers, is expected to increase further.

"Actually, terms inappropriate [mentioning Kredivo] as p2p loans Karena credit line we all come from financial institutions. With finance, does not mean that there are two entities [p2p loans and finance], there is only one entity, but only two licenses. But the way we operate has not changed," he concluded.