Launch partner Sepulsa.com explained the service is showing results in decreasing abandoned carts and increasing ticket size
Coming out of stealth-mode, a Singapore-based credit risk and consumer lending startup named FinAccel has announced today it raised a “seven-digit” funding round led by Jungle Ventures.
Other VCs participating in the round were MO Venture Partners, AlphaJWC Ventures, 500 Durians (the 500 Startups Southeast Asian Fund) and 500 Tuktuks (the 500 Startups Thailand Fund).
Additionally, the company received angel investments from Amar Goel (Founder and Chairman of PubMatic), Prashant Kirtane (Vice President for Asia at HomeAway) as well as Jerry Yeu and Mathieu Harding from Hawksburn Capital.
With an initial launch in Indonesia, FinAccel will target the Southeast Asian market and help an underserved market make purchases on credit.
“The target customer is e-commerce buyers. We are offering e-commerce buyers a ‘Buy now, Pay later’ facility based on the credit risk score that we generate for that user using our real time credit risk engine,” FinAccel CEO Ashkay Garg told e27.
The company’s flagship product called Kredivo and is the two-click ‘Buy now, Pay later’ system referred to by Garg. The idea is to help people get short term financing for their e-commerce purchases and allows users to apply and (possibly) qualify for instant credit before paying for the goods over time.
“Traditional credit bureau driven credit risk profiling has poor coverage in a market like Indonesia thus limiting access to credit to eligible borrowers,” he said in a statement.
FinAccel pitches to merchants the Point-of-Sale system as another option for consumers to use to buy items and, as a result, decrease the rate of cart abandonment.
In the beginning, the company will initially focus on e-commerce financing, but has eyes towards other verticals.
“Traditional credit bureau driven credit risk profiling has poor coverage in a market like Indonesia thus limiting access to credit to eligible borrowers,” said CEO Ashkay Garg in an official statement.
“By bringing a data-driven approach to credit scoring that looks at more than a thousand variables in real time, we are going after an unprecedented opportunity that will help unlock access to credit to tens of millions of eligible borrowers in a fully automated way, not just directly through us but via third-parties who lend using our platform,” he concluded.
Financing processed through Kredivo is underwritten by BFI Finance, an Indonesian multi-finance company.
It has currently integrated with 20 merchants in Indonesia — namely Sepulsa.com and Jualo.com. The CEO of Selpulsa.com, Ananto Wibisono, said cart abandonment is a fact of life for e-commerce companies and Kredivo is helping boost check-out rates and ticket size.
Amit Anand, Founding Partner at Jungle Ventures, pointed to this reality as rationale for the investment.
“We believe FinAccel has the opportunity to solve one of the biggest problems plaguing growth of e-commerce in Southeast Asia. We are very excited to partner with this extraordinary team in creating a leading credit risk scoring and consumer lending company here,” he said in a statement.
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