Two employees chat at Akulaku's Bank Neo Commerce lounge in South Jakarta. (B1 Photo)

Siam Commercial Bank Injects $100m to Indonesian Fintech Startup Akulaku

BY :JAKARTA GLOBE

FEBRUARY 15, 2022

Jakarta. Akulaku, a Jakarta-based digital banking and finance platform, has secured a $100 million strategic investment from one of Thailand's largest lenders, Siam Commercial Bank, to expand its footing in the Southeast Asia region, the fintech company said in a statement on Tuesday.  

The deal follows Akulaku's successful fundraising last year, which accumulated $300 million in fresh capital for the company and its subsidiary. 

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 "We founded Akulaku to meet the daily financial needs of underserved customers in emerging markets," Akulaku's chief executive officer (CEO) William Li said.

"Our recent round of funding will allow us to continue that vision by further expanding the geographic reach of our offerings across Southeast Asia and enable us to continue introducing innovations to serve our customers."

Akulaku raised $125 million last year, while its publicly traded bank subsidiary Bank Neo Commerce raised $175 million from a rights issue in the previous quarter, the company said in the statement. 

Akulaku had disbursed $2.2 billion in loans to more than six million users last year, making it the largest "buy now pay later" (BNPL) and consumer financing platform in Indonesia, the company, claimed in the statement. Its mobile digital banking launched in March 2021 and has served 13 million users. 

The company targets to serve 50 million customers in Southeast Asia by 2025. 

"Akulaku has a dominant market position and is well-positioned with its innovative technology and superior product offerings," Arak Sutivong, the president of Siam Commercial Bank, said in the statement. 

"The investment in Akulaku fits within our regional thesis of serving the underserved market using digital innovations. We look forward to partnering with Akulaku as the company continues to grow," Sivutong said. 

Siam Commercial Bank is the fourth-largest lender in Thailand by asset after Bangkok Bank, Kasikon Bank, and Krungthai Bank, according to data compiled by German research firm Statista. The lender had 3.32 trillion Thailand baht ($106 billion) in assets and 431.7 billion baht in market capitalization on a consolidated basis at the end of last year. 

Akulaku appointed Morgan Stanley as its exclusive financial advisor and Kirkland & Ellis International as legal advisor for the deal. 

 

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