Akulaku Raises $10M in Debt Funding from Lend East

Indonesia-based digital consumer lending platform Akulaku has raised $10 million in debt funding from Singapore-based digital lending platform Lend East to expand its portfolio in Indonesia, the Philippines and in Thailand, the company said in a statement.

The debt financing comes just a month after Akulaku announced new $100 million financing from Thai lender Siam Commercial Bank (SCB). Citing sources, DealStreetAsia had reported last month that it was a pre-IPO round as the company considered a public listing later this year, including through the SPAC route. The size of the IPO could be in the region of $300 million, one of the sources said at the time.

“Akulaku has continued to experience significant growth over the past year, and this additional funding will allow us to continue to meet the needs of underbanked people in Southeast Asia,” said William Li, CEO of Akulaku, in the press release.

Akulaku’s total gross merchandise volume (GMV) was $1.9 billion in the first six months of 2021, an 86% increase from $1 billion in the same year. period of 2020.

The company’s total revenue reached $598 million in 2021, up 120% from the same period a year earlier, driven by its “buy now, pay later” services, management wealth management, e-commerce and digital banking platforms.

Along with other fintechs, Akulaku has played a role in reaching previously unbanked and underbanked people in the region thanks to the pandemic which has been a boost for all things digital, including financial services.

In 2019, Lend East planned to raise debt capital to support alternative lenders in Southeast Asia and India.

“Akulaku was our first investment in the region in 2019, as it aligns with our investment strategy of selecting established and emerging category leaders in their core operating markets,” said Karan Bhatia, CEO and co-founder of Lend East, in the statement. .

Alternative lenders had raised more capital to shore up their balance sheets while keeping their non-performing assets and cash burn manageable during the pandemic-induced crisis.

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