Singapore-based FinAccel, which extends credit to online shoppers in Indonesia under the Kredivo brand, has raised US$90 million (S$123 million) of expansion capital in a fund-raising round valuing the company at almost US$500 million.
South Korea's Mirae Asset-Naver Asia Growth Fund and Australian venture capital firm Square Peg co-led the Series C financing, according to FinAccel chief executive Akshay Garg.
Other backers joining the round included Singtel Innov8, Telkomsel Indonesia, Cathay Innovation and Kejora Intervest.
Kredivo allows online shoppers to apply for a loan through a mobile app and get approval in minutes if they qualify. The app uses customers' personal data and machine learning technologies to determine eligibility.
Similar to credit cards, Kredivo starts charging interest on credit that it extends to customers after 30 days, though its rate is a higher 2.95 per cent a month for a revolving loan.
South-east Asia is rapidly warming to online lending because more than 70 per cent of the adult population is neglected by traditional banks, according to a study by Bain & Company, Google and Singapore investment firm Temasek.
Of the 400 million adults in the region, 98 million are "under-banked" - people with bank accounts but limited access to services such as credit. Another 198 million have little recourse to finance whatsoever.