Indonesia’s Fazz raises $100m Series C
Indonesia’s Fazz, a financial services provider for Southeast Asia micro businesses, has raised a USD 100m Series C round featuring Tiger Global, DST Global, and B Capital Group.
Insignia Ventures Partners, Ace & Company, EDBI, and InterVest also participated, as did Michael Seibel, a managing director at Y Combinator, and Hans Tung, a managing partner at GGV Capital. The investment comprised USD 75m in equity plus a USD 25m debt facility from UK-based Lendable.
It follows a USD 53m Series B in 2020 featuring Tiger Global, B Capital, Ace, Insignia, BRI Ventures, Quiet Capital, and Y Combinator. DST and Tiger Global provided USD 21m in 2018. Y Combinator was the earliest investor in 2017. Previous backers also include MDI Ventures and S2 Capital.
Fazz operated under the name PayFazz until a merger with Singapore payments player Xfers last year. Its core products are Fazz Agen and Fazz Business. The former is an app for micro, small, and medium enterprises (MSMEs) in Indonesia, while the latter provides payments and financing services to companies of all sizes across the region.
The idea is to serve companies that lack access to funding, technology, and networks through financial tools that help them streamline processes, widen their reach, improve their supply chains, and get growth funding. The disadvantages of MSMEs in these areas are seen as exacerbated post-pandemic. Fazz estimates Southeast Asia’s MSME funding gap at USD 300bn.
“Our technology is our key differentiator – we invest a lot in the tech side of our business to ensure that any business from small family shops all the way to big enterprises can access financial tools to build their business,” CEO Hendra Kwik said in a statement.
“More importantly, we want to provide the same benefits that big companies have to small businesses and warung owners. This round of funding will enable us to build this technology edge for our users.”
The company claimed to record USD 10bn in annualised transaction volume last year, and it is hoping to double that figure in the next 12 months. This will involve an expansion of staff in Singapore, Indonesia, Malaysia, Vietnam, and Taiwan, from around 800 to 1,400.
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