Indonesian fintech Akulaku bags US$100m from Siam Commercial Bank

INDONESIAN online lender Akulaku has secured a US$100 million strategic investment from Thailand's Siam Commercial Bank (SCB), giving a boost to already record levels of fintech funding in South-east Asia.

The deal follows the company's previously undisclosed US$125 million fundraise last year, Akulaku said on Tuesday (Feb 15). The funding was co-led by existing investor Silverhorn Group, which has been the startup's financing partner since 2018.

Akulaku's bank subsidiary Bank Neo Commerce also completed a rights issue on the Indonesia Stock Exchange for about US$175 million in Q4 2021.

Founded in 2016, Akulaku operates a "buy now, pay later" (BNPL) and consumer financing platform in Indonesia. It said it disbursed over US$2.2 billion of credit in 2021 to over 6 million users.

The startup, backed by Jack Ma's Ant Group, is reportedly in early talks with special purpose acquisition company (SPAC) Catcha Investment for a US listing via a merger.

The potential deal with Internet entrepreneur Patrick Grove's SPAC could value the combined entity at about US$2 billion, Bloomberg reported last month.

Akulaku would join a growing crop of startups eyeing the public markets amid a tech boom. FinAccel, the parent of Indonesian BNPL peer Kredivo, in August announced a deal with Victory Park Capital's SPAC that values the combined entity at US$2.5 billion.

Fintech funding in South-east Asia soared last year, driven by digital payments and the cryptocurrency boom. Funding in the first 9 months of 2021 was more than 3 times the whole of 2020, hitting a record US$3.5 billion, according to a report by UOB, PwC and the Singapore Fintech Association.

Indonesia's underbanked population has also fuelled interest in digital banking. Bank Neo Commerce, which Akulaku took over in October last year, launched its mobile digital banking services last March and said it has over 13 million users today.

"Akulaku has a dominant market position and is well-positioned with its innovative technology and superior product offerings. We are excited about the investment in the company and look forward to leveraging our deep expertise in Thailand's financial services sector to support its expansion," said SCB president Arak Sutivong in a press statement.

Akulaku also operates Asetku, an online wealth management platform, and Wisecart, an e-commerce platform with BNPL services in Europe.

Morgan Stanley is the exclusive financial advisor to the company for the transaction with SCB, and Kirkland & Ellis International is the legal advisor.

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