Kredivo Receives Additional Funds of IDR 1.4 Trillion from VPC

Credit platform for retail customers Kredivo received an additional injection of USD 100 million (equivalent to IDR 1.4 trillion) from Victory Park Capital (VPC).

Previously in July 2020, Kredivo and had received credit line funding from Victory Park Capital with a value of USD 100 million.

With this new funding, the total value of the credit line from VPC increased to USD 200 million (equivalent to IDR 2.8 trillion).

This credit fund is planned to be distributed by Kredivo to its users in Indonesia. For Kredivo, credit line funding from VPC is the biggest to date. 

As for VPCs, funds to Kredivo are the largest line of credit ever disbursed to fintech companies outside the United States and Europe. This collaboration is also historic for the digital credit ecosystem in Indonesia and Southeast Asia.

The reason is, amid the dominance of the peer-to-peer lending business model in the unsecured lending industry, the transaction between VPC and Kredivo is one of the largest transactions for unsecured loans in Indonesia.

Kredivo’s Business Scale Will Accelerate

Kredivo Indonesia CEO Umang Rustagi said the funds available through this collaboration would accelerate Kredivo’s business scale in 2021 and the following years.

“This fund will also help achieve our target of serving 10 million customers in Indonesia in the next few years,” he said in an official statement.

Partner at VPC, Gordon Watson, said he was impressed with Kredivo’s resilience and business growth.

“We are certainly pleased to continue to strengthen our partnership with Kredivo. The company represents a unique combination of growth, business scale, risk management and financial inclusion in one of the world’s most attractive emerging markets,” said Watson.

Pandemic Acceleration of Changes in Online Shopping Behavior

Apart from the new funding injection, previously Kredivo together with the Katadata Insight Center launched the second edition of the annual research on Consumer Behavior of E-Commerce Indonesia 2021. 

This research is complemented by an analysis of consumer payment behavior and paylater use during the pandemic.

This research itself utilizes primary data of 10 million sample transactions from the six largest e-commerce players in Indonesia during January to December 2020. 

The data is strengthened by online surveys to provide a direct overview of the country’s e-commerce industry.

As a result, research conducted by Kredivo and Katadata Insight Center shows that the average value of e-commerce transactions in 2020 has increased in all product categories when compared to 2019.

The use of the paylater method also increased during the pandemic, with a record there were 55 percent of new users during that period.

“Research conducted by Kredivo with the Katadata Insight Center this year strengthens our conclusion that e-commerce adoption will continue to increase every year,” said Kredivo VP Marketing and Communications, Indina Andamari, in an official statement received on Thursday (10/6/2021). .

Kredivo’s Electronic Financing Transaction Value up to 133% yoy

Digital multi-finance company, Kredivo, has succeeded in increasing the value of electronic financing transactions. The proof is, until May 2021, Kredivo’s electronic financing transactions soared by 133% on an annual basis (yoy).

This growth occurs in line with the high demand for electronics in society. At Kredivo, the value of electronic financing transactions accounted for 46.59% of the total transaction value of all product categories.

For the number of transactions itself, the electronic category has contributed 13.62% of the total number of transactions in all categories in e-commerce.

VP Marketing Communications Kredivo Indina Andamari said, actually for electronic needs in 2020 and 2021 there will be no significant difference because the need for electronics remains high in line with the conditions of the Covid-19 pandemic. However, he assesses that people’s purchasing power has started to grow in 2021.

“In 2021, there will still be some restrictions such as PJJ but accompanied by economic recovery, people are also used to digital activities and of course continue to need electronic devices to support these activities,” he said.