SE Asia-focused Chinese fintech player gets $70m Series C

Founded in 2016, Akulaku is one of the several Chinese fintech players to focus on overseas markets. The company’s main focus is Indonesia – it claims to be the largest online consumer finance provider in the country – while there are also operations in Vietnam and the Philippines.

Akulaku’s services were initially limited to virtual credit cards, but it subsequently expanded into e-commerce, selling computers, communications and consumer (3C) products sourced from both local suppliers and its own purchase channels. The platform currently has three million stock keeping units (SKUs). Akulaku uses the e-commerce business to attract customers and then offers them a range of accompanying financial services, such as installment payment plans.

The mobile app has achieved more than 20 million downloads and attracted 13 million registered users, with transaction volume reaching $100 million, according to Wenbo Li, Akulaku’s founder. The company will use the new capital to improve services through the application of artificial intelligence and big data technology. There are also plans to develop more opportunities offline. Akulaku wants to offer micropayment services through restaurants and convenience stores and extend its loan services to include small to medium-sized enterprises.

Southeast Asia has become a prime target market for Chinese fintech and e-commerce companies in recent years. The region’s internet infrastructure is relatively underdeveloped, which creates scope for new market entrants, while the combination of its demographics, rapid smart phone adoption, and rising consumer spending represent an attractive growth opportunity.

Alibaba Group and Tencent Holdings have both made strategic investments in Southeast Asia with a view to achieving a local foothold. Alibaba has used online retailer Lazada to push Alipay in the region and Ant Financial has since applied for local payments licenses in several countries. Meanwhile, smart phone maker Xiaomi launched online credit services in Indonesia earlier this year.

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• Topics
• Southeast Asia
• Greater China
• Technology
• Financials
• Expansion
• Indonesia
• Blue Sky Private Equity
• Sequoia Capital
• Qiming Venture Partners
• China
• Growth capital