Kredivo closes up to $20m credit line for Indonesian growth
Kredivo, the digital credit platform for retail borrowers in Indonesia, has made its largest deal with an international lender by closing an on-demand debt line of up to $20 million with Partners for Growth V, LP (PFG), reports Jane Connolly.
The credit will be used to fund Kredivo’s ecommerce financing
It is PFG’s first deal in Indonesia and one of their largest in APAC. The credit will be used to fund Kredivo’s ecommerce financing, personal loans and offline products, and to diversify its loan book.
Kredivo has seen its transaction value and loan book grow at 40% and 35% per quarter respectively over the last 18 months.
“While the credit line is going to give us fuel to accelerate our growth, what is especially satisfying to us is that we came out on the winning side of a very deep evaluation conducted by the PFG team,” says Umang Rustagi, commissioner of Kredivo.
Jason Georgatos, partner at PFG, adds: “We have invested in a unique company that matches our values of fair and sustainable financial inclusion. Kredivo is one of the lowest cost lenders in the market and has one of the best risk metrics that we have come across, yet it is also one of the fastest growing.”
With less than 3% of its population possessing a credit card, Indonesia has become a hotbed for the digital lending industry, which looks to serve the credit-starved country. Kredivo’s deal with PFG is a change from the more typical peer-to-peer lending models.
