The series A deal was finalized a few months ago but not made public until today. CEO Akshay Garg declined to disclose the amount. NSI Ventures was an early backer of Go-Jek, which rose to become Indonesia’s first billion-dollar startup. Other notable NSI investments include Singapore insuretech firm CXA.
Addressing payments pain points
Kredivo, whose parent company FinAccel is headquartered in Singapore, launched in Indonesia last year to tackle a fundamental problem ecommerce startups were facing: customers didn’t fully trust online shopping. They weren’t convinced the product they paid for would arrive and hesitant about spending larger sums.
Low credit card ownership in Indonesia compounds the problem because this means people need to pay out of their pocket right away. This resulted in high cart abandonment rates, where shoppers end up not completing the payment process even though they were interested in a product.
Kredivo’s solution addresses these fears. It lets you buy things online on credit, so no money is transferred before the product arrives. You can then pay in installments, which helps because you don’t have to commit to a large investment at once.
It’s a bit like paying with a credit card, except that it’s entirely digital. Kredivo decides if a user is creditworthy by analyzing various sources including self-reported data, data from users’ mobile phones, social media behavior, and environmental factors like time of day, or which channel brought them to the shopping site.
Ecommerce startups have been keen to implement it on their sites as a payment option, Kredivo says. The first to test it in 2016 was Jualo, a marketplace for buying and selling things in your neighborhood. Kredivo is now used by more than 100 ecommerce merchants, including six of the major online shopping sites in Indonesia: Bukalapak, Lazada, Jd.id, Bhinneka, Blibli, and Shopee.
Jungle Ventures, GMO Venture Partners, AlphaJWC Ventures, 500 Startups, and a slew of angels participated in Kredivo’s seed round last year.
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