SE Asia commerce finance platform Akulaku gets $100m
Akulaku, an Indonesia-based digital finance platform backed by the likes of Qiming Venture Partners and Sequoia Capital India, has received a USD 100m investment from Thailand’s Siam Commercial Bank (SCB).
It follows a USD 300m fundraising effort in 2021, comprising a USD 125m investment led by Silverhorn Group – a Hong Kong-based multi-asset investment firm and Akulaku’s financing partner since 2018 – and a USD 175m public rights issue by Bank Neo Commerce, a subsidiary of Akulaku.
Founded in 2016, Akulaku was part of the wave of Chinese financial technology players that turned their attention to Southeast Asia as regulations tightened in the domestic market for peer-to-peer lenders. Navigating regulation and licensing ultimately became the key to localisation in Indonesia, and Akulaku is one of few survivors.
The company’s initial funding points to its Chinese roots, with Qiming and DCM committing USD 5m in 2017. This was followed by a USD 70m round in 2018 that featured Qiming, Sequoia, Blue Sky Venture Capital, and Chinese online financial services player Finup Group.
Akulaku has a presence in Indonesia, the Philippines, Vietnam, and Malaysia. It claims to be the largest buy now, pay later (BNPL) and consumer financing platform in Indonesia, disbursing more than USD 2.2bn in credit to over 6m users last year. In addition to its virtual credit card and e-commerce platform, the company operates Asetku, an online wealth management business.
Bank Neo Commerce was established last year as a digital and open banking platform. It has become the fastest growing digital bank in the country, with more than 13m users.
Kredivo, which last year agreed to merge with a special purpose acquisition company (SPAC) at a valuation of $2 billion, established itself as Indonesia’s leading BNPL lender at a time when cash-on-delivery dominated in the absence of credit cards and reliable bank transfer technology. Partnerships with eight of the country’s 10 e-commerce platforms, including Bukalapak and Shopee, were crucial to the company’s emergence.
Since then, investment has flowed into the space. Advance Intelligence Group, which made its name in risk assessment technology and expanded into BNPL in the last 24 months, secured USD 400m at a valuation of USD 2bn last year. This was followed by a USD 40m Series A for Singapore BNPL platform Pace Enterprise. E-commerce players like Ula have launched their own BNPL offerings.
“This investment in Akulaku marks our continued commitment and strong belief in the long-term prospects of Indonesia as one of the fastest-growing digital economies in the region. Akulaku has a dominant market position and is well-positioned with its innovative technology and superior product offerings,” Arak Sutivong, president of Siam Commercial Bank, said in a statement.
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