Indonesia-based fintech platform Kredivo has finalised its acquisition of local financing company PT Swarna Niaga Finance for an undisclosed sum. The acquisition process has begun since the middle of last year.

Kredivo Indonesia CEO Alie Tan said that the move will not change the company’s business direction. According to the CEO, ever since the beginning, Kredivo’s financing scheme is dominated by consumer credit providers instead of cash lenders. This is also the reason why multi financing license is deemed more suitable for Kredivo.

“This is why we can expect to grow rapidly and serve 10 million users in the next few years,” Tan told DailySocial on Tuesday, October 6.

His statement strengthened that of Co-Founder Akshay Garg who said that Kredivo’s lending service will be able to grow through multi financing licenses.

The license is considered more secure as there is already a fully formed regulation by the authority. In fact, the license also enables Kredivo to channel 30 per cent of its financing to online lending platforms.

Also Read: Kredivo raises US$90M to expand its lending biz in Indonesia; to roll out low-interest education, healthcare, Shariah loans

In a statement letter by Financial Services Authority (OJK), following the acquisition, PT Swarna Niaga Finance changed its name to PT FinAccel Finance Indonesia. The letter was dated September 22; it also serves a license to operate for the company.

“The Commissioner Board of OJK is granting this financing business license as related to the name change of PT Swarna Niaga Finance to PT FinAccel Finance Indonesia,” wrote Dewi Astuti, head of non-bank finance institution supervisory board at OJK in the statement letter.

This means PT FinAccel Finance Indonesia has officially secured two licenses as P2P lending and multi financing providers. The company is registered under the POJK 77 Year 2016 regulation on March 21, 2018.

Kredivo and Akulaku

Tan declined to share further details on Kredivo’s plan with this new license. “We will soon share the roadmap as we are still working on it internally,” he said.

One thing for certain is that by becoming a multi financing company, it will be easier for Kredivo to channel multipurpose financing to other sectors, as with the typical multi financing companies. They can expand to vehicle, property, and electronic financing, for example.

For resources, they can rely on loans from banks through channelling or joint financing, obligation, on/offshore syndication, or IPO. There is a similarity between Kredivo’s business direction today with Akulaku, another leading Indonesian fintech company.

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The article was written in Bahasa Indonesia by Marsya Nabila for DailySocial. English translation and editing by e27.

Image Credit: Kredivo

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