MUFG invests $200m in Indonesia fintech player Akulaku
Akulaku, an Indonesia-based digital finance platform that has raised several rounds of venture capital funding, has received a USD 200m investment from Japan’s Mitsubishi UFJ Financial Group (MUFG).
This is the second strategic investment in the company in the space of 12 months, following a USD 100m commitment from Thailand’s Siam Commercial Bank (SCB) in February. In 2021, Akulaku raised USD 300m, comprising a USD 125m investment led by Silverhorn Group 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 the few survivors.
The company’s initial funding points to its Chinese roots. Between 2017 and 2018, Qiming Venture Partners, DCM, Sequoia Capital China, Blue Sky Venture Capital, and Chinese online financial services player Finup Group contributed USD 75m across two rounds.
Akulaku now has a presence in Indonesia, the Philippines, and Malaysia. It operates a buy now, pay later (BNPL) and consumer financing platform, an e-commerce platform, an online wealth management business called Asetku, and issues virtual credit cards. Bank Neo was established last year as a digital and open banking player.
The company said in a statement that MUFG would support the expansion of banking services across Southeast Asia with an emphasis on reaching underserved customers and markets. Akulaku will also work with MUFG companies across Southeast Asia on technology, product development, financing, and distribution.
"Southeast Asia is key and a second home market to MUFG. Our investment in Akulaku will further solidify our commitment in this region to meet growing financial needs of underserved customers,” said Kenichi Yamato, CEO of global commercial banking at MUFG Bank.
“With Akulaku's digital financial services backed by its strong technology, our journey with Akulaku will help us further contribute to the growth of this region.”
MUFG added in a separate statement that Indonesia is an especially important market given its size and expected high growth rates. In addition to acquiring Bank Danamon in 2019, MUFG has formed a capital and business alliance with ride-hailing platform turned super app Grab and bought consumer financing platform HC Indonesia. It also acquired HC Philippines.
Morgan Stanley was Akulaku’s financial advisor on the transaction, while Kirkland & Ellis served as legal counsel.
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