SA国际传媒

As humans, we often want instant gratification.

Subscribe to the SA国际传媒 Daily

But sometimes, our wallet isn鈥檛 ready for a flight, or a wedding dress, or an Instant Pot, or a burger through our favorite food delivery service.

So, Singapore-based FinAccel, along with a crowd of international installment loan startups, has a simple pitch: With some credit on top, maybe.

To help ecommerce customers have flexible spending, and aid ecommerce merchants with faster checkout, . The round was led by Asia Growth Fund and Square Peg, with participation from Singtel Innov8, TMI (Telkomsel Indonesia), Cathay Innovation, Kejora Intervest, Mirae Asset Securities, Reinventure, DST Partners and more.

The financial services startup now has around $200 million in mixed venture capital and debt funding to date, per SA国际传媒. that FinAccel is now worth $500 million. It plans to use this new cash to expand in Indonesia and the region, as well as launch new services.

Now that we have an idea of FinAccel鈥檚 funding situation,let鈥檚 get into its main product, Kredivo.

How It Works

If a customer is shopping on an ecommerce website that has integrated with Kredivo, they can choose a payment plan upon check out. , Kredivo allows customers to take credit between $100 and $2,200. If a customer pays back that total within a month, there鈥檚 no fee. If it takes longer than a month, then the service has a variety of different interest rates and payment schedules.

The upstart claims that it can get customers lower financing rates than consumer finance companies. The startup says in return merchants benefit from instant point-of-sale financing, high settlement rates, and a seamless checkout experience.

But both in and out of the region, Kredivo is not alone in the credit loan space. In terms of competition in the check out cart, I鈥檇 point to San Francisco-based Affirm. The purchase financing company startup, founded in 2012, has raised $1 billion in known funding to date, according to . It integrates with check out across various merchants like Peloton, Casper, and Adidas. It can charge an interest rate atop a monthly payback plan.

A Gaggle Of Competitors

Take Julo, . The Jakarta-based startup provides loans of about $300 to families and small businesses. There鈥檚 also KoinWorks, which focuses on lending to small businesses, and . In South Asia more broadly, PayTM, which recently raised $1 billion, is offering digital loans to customers ().

Why the focus? In a press release announcing the round, FinAccel pointed to the Indonesian government鈥檚 goal to increase access to financial services for the country鈥檚 growing middle class. User-wise, there is definitely a demand. In three years, FinAccel has doled out over 30 million loans to customers. With this new funding under its belt, it wants to service 10 million users total in the near future.

Illustration: