Invest in B2C and P2P financing companies offering affordable personal loans (small-size, low interest rates and collateral-free) to serve the needs of the underserved population segments, merely using ID proof and contact number of borrowers as a minimum requirement. (11) Examples of some companies active in this space are:
PT. Finansia Multi Finance (subsidiary of KB Kookmin Card Co., Ltd.) (KreditPlus), founded in 1994, provides finance solutions for automobiles, motorcycles, heavy equipment, personal computers, office tools, furniture, and video equipment. In 2020, it raised USD 50 mn from the International Finance Corporation (IFC) and USD 200 mn from SMBC, HSBC, KEB Hana, ANZ, SCB and DBS. (15)
Akulaku Inc., founded in 2016, operates in emerging markets with underserved consumers. It provides digital banking services, consumer credit, digital investments and insurance. Till 2019, it has raised USD 220 mn, including USD 100 mn in Series D round (at USD 450 mn post-money valuation) from Ant Financial Services Group and Alibaba’s financial services arm (USD 40 mn) (16).
Kredivo (product of FinAccel Pte Ltd.), founded in 2015, is a digital credit platform. It has >3mn customers and offers 2 types of lending products: 0-interest 30-day “‘buy now, pay later” financing for e-commerce and offline purchases, and 3-, 6- and 12-month installment loans with an interest of 2.6% a month (annual rate of 53.36%). It raised USD 200 mn in debt from Victory Park Capital. (17)
PT Julo Teknologi Perdana, founded in 2016, provides affordable unsecured personal loans, using machine learning technology to assign varying interest rates and credit limits to borrowers as per their credit worthiness. It offers digital credit, cashback bonus and lower interest rates. It raised USD 10 mn from Quona Capital and USD 5 mn from East Ventures, Skystar Capital in Series A round. (18)
Provision of affordable loans to the lower income group and retail customers beyond urban areas to ensure financial inclusion and facilitate sustainable growth in the economy