FinAccel, the parent company of Indonesia’s digital credit platform Kredivo, has acquired a 24% stake in local bank PT Bank Bisnis Internasional Tbk, according to a stock exchange disclosure by the latter.
FinAccel spent 551.31 billion rupiah ($38.4 million) to buy the stake in Bank Bisnis Internasional from its existing shareholders PT Sun Land Investasi and Sundjono Suriadi.
Prior to the transaction, Sun Land Investasi owned a 37.54% stake and Suriadi, a 31.22% stake, in the small lender. Their shareholding has come down to 19.76% and 25%, respectively. Meanwhile, PT Sun Antarnusa Investment and the public hold 14.94% and 16.30% stakes, respectively, in the lender.
At the end of 2020, Bank Bisnis’s core capital had reached 1 trillion rupiah ($70,13 million). Indonesia’s banks are required to increase their core capital to 3 trillion rupiah ($210 million) by 2022, per regulation issued by the country’s Financial Services Authority (OJK).
FinAccel operates Kredivo and peer-to-peer unit KrediFazz.
Founded in 2016, Kredivo provides customers in Indonesia instant credit financing, including buy now, pay later (BNPL) options, for e-commerce and offline purchases, and personal loans. It competes directly with Sequoia-backed digital credit lender Akulaku, peer-to-peer lenders such as UangTeman, and online marketplaces and payment startups such as Tokopedia, Traveloka and OVO that have also developed their own BNPL features.
Kredivo had last raised a $100 million debt facility from US-based Victory Park Capital in November 2020.
FinAccel had previously bagged $90 million in a Series C round in December 2019 co-led by South Korea’s Mirae Asset-Naver Asia Growth Fund and Australian venture capital firm Square Peg. The 2019 round reportedly saw its valuation jump to almost $500 million.
Other investors on its cap table include Singtel Innov8, Telkomsel Indonesia, MDI Ventures, Cathay Innovation, DST Partners and Kejora InterVest.
Consolidation afoot in Indonesia’s banking sector
The stake acquisition in Bank Bisnis Internasional by FinAccel is among a string of recent deals in Indonesia’s banking sector.
In December 2020, ride-hailing and payments major Gojek increased its stake in listed lender Bank Jago to 22%. Subsequently, in February this year, Bank Jago also secured an investment of $222 million from Singapore’s sovereign wealth fund GIC through a rights issue offering.
Sea Group’s e-commerce arm Shopee has acquired local lender Bank Kesejahteraan Ekonomi (Bank BKE), which has now been renamed PT Bank Seabank Indonesia, with the aim of transforming it into a digital bank. Similarly, P2P lender Akulaku has built up a sizable stake in PT Bank Neo Commerce Tbk.
The most recent deal in the space is fintech lender ALAMI confirming the acquisition of a Shariah rural bank.