B2B embedded finance startup Fairbanc has secured US$13.3 million in debt financing from digital lending arm of Pegadaian, a subsidiary of Financial institution Rakyat Indonesia.
In response to DealStreetAsia, Fairbanc goals to utilise the newly acquired funds to broaden its operations in Indonesia, specializing in off-balance sheet financing by way of its newly launched Purchase Now, Pay Later (BNPL) gateway.
Fairbanc leverages the provision chain knowledge of FMCG distributors to automate credit score scoring and threat monitoring, thereby extending important working capital to its purchasers.
The startup, which initially collaborated with Unilever in Bangladesh earlier than increasing to Indonesia in 2021, gives MSMEs the chance to buy stock by BNPL credit score.
This enabled Fairbanc to onboard greater than 550,000 retailers because it doesn’t require collateral, credit score historical past, smartphone possession, or digital literacy.
Based in 2019 by Mir Haque, a Wharton College alum, Fairbanchad beforehand raised US$4.8 million in a pre-Sequence A funding spherical led by Vertex Ventures Southeast Asia and India, with contributions from Lippo Firms, Asian Improvement Financial institution, and Accion Enterprise Lab.
Wanting forward, Fairbanc isn’t solely specializing in consolidating its presence in Indonesia however can be exploring growth alternatives in Vietnam and the Philippines in collaboration with Unilever.
Featured picture credit score: Fairbanc
