B2B embedded finance startup Fairbanc has secured US$13.3 million in debt financing from digital lending arm of Pegadaian, a subsidiary of Bank Rakyat Indonesia.
According to DealStreetAsia, Fairbanc aims to utilise the newly acquired funds to broaden its operations in Indonesia, focusing on off-balance sheet financing via its newly introduced Buy Now, Pay Later (BNPL) gateway.
Fairbanc leverages the supply chain data of FMCG distributors to automate credit scoring and risk monitoring, thereby extending essential working capital to its clients.
The startup, which initially collaborated with Unilever in Bangladesh before expanding to Indonesia in 2021, offers MSMEs the opportunity to purchase inventory through BNPL credit.
This enabled Fairbanc to onboard more than 550,000 merchants as it does not require collateral, credit history, smartphone ownership, or digital literacy.
Founded in 2019 by Mir Haque, a Wharton School alum, Fairbanchad previously raised US$4.8 million in a pre-Series A funding round led by Vertex Ventures Southeast Asia and India, with contributions from Lippo Companies, Asian Development Bank, and Accion Venture Lab.
Looking ahead, Fairbanc is not only focusing on consolidating its presence in Indonesia but is also exploring expansion opportunities in Vietnam and the Philippines in collaboration with Unilever.
Featured image credit: Fairbanc
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- Source: https://fintechnews.sg/89551/indonesia/fairbanc-to-enhance-indonesian-operations-with-us13-3m-debt-financing/
