MUFG Injects Investment into Akulaku 3,1 Trillion Rupiah

Mitsubishi UFJ Financial Group Inc. (MUFG) provided an investment of $200 million or 3,1 trillion Rupiah to Akulaku. This confirms previous reports in which MUFG is reportedly exploring an investment deal in the form of financing this to the fintech company.

This investment is in addition to supporting growth Akulaku, in line with its mission to provide financial services in Southeast Asia, and reach underserved customers and markets.

This is the second strategic investment received by Akulaku this year. Previously, Akulaku raised $100 million in funding from Siam Commercial Bank (SCB) in early 2022. This acquisition builds on a $125 million investment round in the previous year led by the Silverhorn Group, which is also the financing partner (financing partners) since 2018.

In their official statement Akulaku emphasized that the partnership with MUFG will provide knowledge, resources and services that can help companies implement long-term plans related to user growth.

"Southeast Asia is a key and secondary market for MUFG. Our investment in Akulaku will further our commitment in the region to meet the financial needs of underserved customers. With digital financial services Akulaku and supported by technology, our journey together Akulaku will help us to further contribute to the growth of this region,'' said Managing Executive Officer & Chief Executive of the Global Commercial Banking Business Unit MUFG Bank Kenichi Yamato.

The company's plan as a platform that presents BNPL options, is claimed to be in line with MUFG's plans. Joint expansion into new territories, markets and products will accelerate in 2023. Furthermore, Akulaku will work with MUFG companies across Southeast Asia to develop technology, product, finance and distribution. As a platform that has leading technology in terms of risk management, mobile banking and customer acquisition, this partnership can provide benefits to both parties.

Reporting from Reuters, the funding follows MUFG's purchase of its units in the Philippines and Indonesia from Dutch consumer finance firm Home Credit last November for about 596 million euros ($632 million). MUFG made Jakarta-based Bank Danamon (BDMN.JK) a consolidated subsidiary in April 2019.

Positive growth

Established in 2014, Akulaku presents a diverse portfolio of financial products to reach a wider market segment. The company offers a service e-commerce, paylater (BNPL), cashloan, fintech lending and digital banks.

Recorded until the end of 2022, the company has significantly increased revenue, user base, GMV and lending throughout 2022. Furthermore, Morgan Stanley acts as a financial advisor Akulaku. Meanwhile, Kirkland & Ellis International LLP will act as legal counsel Akulaku.

Akulaku has been present in Indonesia, the Philippines, and Malaysia. In addition to providing virtual credit cards, Akulaku and e-commerce platforms, the company also operates Assetku, platforms wealth managementand neobank which is a subsidiary under Akulaku Group. Mission Akulaku going forward is to serve 50 million users across Southeast Asia by 2025.

In last September, Akulaku formalized their strategic collaboration with Alipay+ to expand the use of Paylater products. Through this partnership, consumers can transact using payment methods Akulaku Paylater in various merchant Global owned by Alipay+. Currently, Alipay+ has connected to one million offline merchant in Europe and Asia, including global platforms, such as Apple, Google, Agoda and TikTok.