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FinAccel, a Southeast Asian-based start-up that offers a digital credit card service in Indonesia, closed a $ 30 million Series B round as it began to consider expanding abroad.
A year ago to help consumers pay online in Southeast Asia, where credit card penetration is generally low, and it's basically the combination of a credit card. digital credit and PayPal. The service is available in Indonesia, the largest economy in Southeast Asia, where it uses the phone number of a registered customer – there is no physical credit card – and a dedicated cash register on online sales sites
. the repayment option, and then longer-term options with payback periods of three, six and 12 months. The 30-day option is interest-free, but other plans come with a charge of 2.95% per month on the principle of reduction, making it a rate of 30%. error of 25%.
FinAccel consumers in Indonesia, while in the retail business, it's associated with 200 online sales platforms including Alive, Lazada, Shopee (owned by Garena) and Unicorn Tokopedia , which counts SoftBank and Alibaba among By the way, this new investment is notable for Southeast Asia, which has generally been considered to have a deficit in financing the B series, so that $ 30 million for a two-year business is something
The turn itself is led by Square Peg Capital, one of the largest operations overseas so far, alongside new investors MDI Ventures, affiliated with Telkom Indonesia and Atami based in the UK. Capital city. Existing Investors Jungle Ventures, Openspace Ventures, GMO Venture
Alpha JWC Ventures and 500 Startups also took part in the round
FinAccel Founders (from left to right) Umang Rustagi (COO), Akshay Garg (CEO) and Alie Tan (Chief Product Engineering)
The start-up raised a seed of more than $ 1 million in 2016, before quietly raising a $ 5 million A series. last year, revealed Akshay Garg, co-founder of FinAccel. 19659002] Garg, who founded the Komli advertising firm, said the company treats "hundreds of millions" in US dollars a year and that his immediate plan is to continue growing in Indonesia. Already, however, he is considering potential expansions with his first move abroad is likely to be in Southeast Asia in early 2018, although he refused to provide more details .
"Our goal is to become the preferred digital credit card for millennials in Southeast Asia," he told TechCrunch. "It's the consumers who are mobile first and already bankable.The credit gap in this market is huge, there is no electronic verification and other things that we Let's take it for granted in the West just do not work here. "
FinAccel does not go after the unbanked people in the region – do not go after the banks either. </ p> <p> Garg said he It is possible that the company is trying to work with banks in the future in order to increase its market share and to offer new products.
An area that she studying is financial products – such as personal, educational, and emergency loans – but there may be ways to take advantage of its online presence and adoption among young people and to work with financial institutions existing, that he believes simply unable to achieve in the same way. z you disrupt the banks, we are more partners, "he explained. "We could partner with the balance sheet and credit card issuance to provide more efficient and transparent financial inclusion at the best rates possible."
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