The multi-finance startup Kredivo announced additional credit from a US-based investment company, Victory Park Capital Advisors, LLC (VPC) worth of $100 million (more than 1.4 trillion Rupiah). This is the VPC’s second time to top up with the same nominal for Kredivo, the first collaboration occurred in July 2020.

In a virtual press conference with media held by the company today (22/6), Kredivo Indonesia’s CEO, Umang Rustagi said that the funds will be fully channeled to Kredivo’s consumers in Indonesia in need for credit. The company plans to expand financing products beyond just cash loans and transactions on e-commerce platforms.

Positioned as a multi-finance company, Kredivo is preparing financing products for health, education, and vehicles. “The funds provided through this collaboration will be able to accelerate our business scale in 2021 and in the following years, also help achieve our target to serve 10 million customers in Indonesia by 2025,” Rustagi said.

Currently, Kredivo claims to have more than three million users in Indonesia. This number is equivalent to 40% of credit card users totaling 8 million people, after being deducted by an estimate that one person has more than one credit card.

“Kredivo’s consumer growth and disbursement needs in Indonesia are growing rapidly. Through our research, new users have been using the paylater for the past year,” Kredivo’s VP Marketing & Communications, Indina Andamari said.

Rustagi continued, VPC’s decision to top up credit at Kredivo was due to the large potential for the unbanked group in Indonesia. In addition, the company’s ability to maintain risk management and successfully become a sustainable business in the midst of a pandemic over the past year.

Separately, in an official statement, VPC’s Partner, Gordon Watson said, “We are very impressed with Kredivo’s resilience and business growth and are certainly very pleased to continue to strengthen our collaboration with Kredivo. The company represents a unique combination of growth, scale, risk management and financial inclusion in one of the world’s most attractive emerging markets.”

In addition to VPC, Kredivo has previously partnered with a number of local banks as institutional lenders, including Bank Permata with a value of IDR 1 trillion and Partners for Growth with a value of IDR 283 billion. Both institutions entered last year.

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Original article is in Indonesian, translated by Kristin Siagian