1. Startups

Alpha JWC Ventures Again Participates in Paylater Startup Funding "Pace"

The total funds collected reached 569 billion Rupiah; Pace will use fresh funds to expand to Japan, Korea, and Taiwan

Startups paylater aka BNPL (buy now pay later) Peace announced that it had raised $40 million (over 569 billion Rupiah) in a series A funding round. Investors joining the round were UOB Venture Management, Marubeni Ventures, Atinum Partners, AppWorks, and a series of family offices from Japan and Indonesia.

Previous investors, Vertex Ventures Southeast Asia, Alpha JWC Ventures, and Genesis Alternative Ventures also participated. All three injected Pace in early-stage funding with a seven-figure value earlier this year.

In an official statement, Founder & CEO of Pace Turochas 'T' Fuad explained that this round of investments came from some of the most successful and established investors which signifies their belief that Pace is a leading BNPL player in Asia.

“This area is expected to be the fastest growing BNPL market in the world. This funding will support Pace in achieving its mission to democratize financial services for all, and help us expand into Japan, Korea and Taiwan,” said T.

UOB Venture Management Executive Director Paul Ng added, “We are impressed by the clear vision of Pace's founders, rapid growth and experience not only in BNPL payments, but in its progress in creating financial inclusion, and remain confident in their ability to revolutionize services. finance."

After this investment round, Pace claimed to be the fastest growing multi-region BNPL player from Singapore. The new funding will be used by the company to expand its technology, operations and business development, to reach $1 billion in Gross Merchandise Value by 2022 and grow its user base by 25 times over the next 12 months.

Until now, Pace has more than 3 thousand points of sale throughout the region, operating from various types of businesses, ranging from fashion, fitness, F&B, education, jewelry, hobbies, services, electronics, and others. The company leverages its technology to increase overall sales by up to 25% by leveraging local customer insights, while driving repeat purchases (repeat purchases) of a rapidly growing user base.

Pace was launched earlier this year by T. It has successfully expanded its overseas operations in collaboration with regulators and adapting ultra-local approaches, such as integrating payment methods within the frequently used marketplace to build resonance with merchants and buyers. This strategy will continue to replicate the hyperlocal framework as it rolls out in new countries.

Pace enables consumers to split their purchase bill into three interest-free payments over 60 days, through an omnichannel experience that helps consumers shop sustainably.

Pace aims to create financial inclusion for consumers in the region, by helping them control and shop at their own pace, while helping merchants meet growing consumer demand and increase sales efficiency. Currently, Pace operates in Singapore, Malaysia, Hong Kong and Thailand.

No plans to enter Indonesia yet

It has not been disclosed when Pace's plans for present in Indonesia. However, this market segment is already crowded with many players from both local and overseas. Its implementation appears in many applications, from digital wallets, ticket bookings, to the most popular on the platform E-commerce and / or online marketplace.

More Coverage:

BNPL is one of the fintech segments that promising its potential in Southeast Asia. According to research conducted by Google, Temasek Holdings and Bain & Co., about half of Southeast Asia's nearly 400 million adults are unbanked.

More than 90 million more “underbanked”: They have bank accounts but do not have adequate access to investment, insurance, or credit products. Millions of small and medium-sized businesses also face significant funding gaps, according to the study. The problem is more thorny in Indonesia, where more than 70% of adults—about 140 million people—do not have a bank account or unbanked.

Chart retrieved by Nikkei Asia

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