Consumer credit risk, scoring and lending platform FinAccel is acquiring a majority stake in the private commercial financial institution Bank Bisnis International for $200 million as part of the FinTech startup’s growth strategy in the financial services sector, according to a press release on Monday (April 4),
The move gives FinAccel, the parent company of Kredivo, future inroads into online banking, digital credit, buy now pay later (BNPL) and bigger-ticket loans. Headquartered in Jarkata, Indonesia, the acquisition gives FinAccel a major push into digital banking services.
“While Kredivo has been at the forefront of consumer credit digitization via our BNPL business over the last several years, the digitization of Indonesian banking services is only getting started. In line with our mission to serve customers with products that are fast, affordable and widely accessible, we look forward to serving customers with world-class banking products in the future,” said Akshay Garg, group CEO and co-founder of FinAccel.
FinAccel will own 75% of the bank, with the Suriadi family — the former majority owners — retaining a significant minority interest. The transaction is pending the approval of Indonesia’s Financial Services Authority (OJK).
“Bank Bisnis has a long and proud heritage. As the banking sector rapidly digitizes, we are very excited to bring in FinAccel Teknologi as the new majority shareholder of the bank, and look forward to working with them in their vision of building the leading digital bank franchise in Indonesia,” said Purnawan Suriadi, lead shareholder representative for the Suriadis.
Founded in 2015, FinAccel aims to make financial services more accessible to the under-banked population of Southeast Asia. Its BNPL platform Kredivo is used extensively in Indonesia and Vietnam.
FinAccel has received backing from Victory Park Capital Advisors, Mirae Asset, Naver, Square Peg, Jungle Ventures, Telkom Indonesia, Singtel and GMO, and others.
Last month, FinAccel pulled its planned $430 million initial public offering (IPO) due to adverse market conditions. The IPO was announced in August and was set to take place via a $2.5 billion merger deal with special purpose acquisition company (SPAC) VPC Impact Acquisition Holdings II.