B2B fintech startup Fairbanc secures $13.3m in Pegadaian-backed debt financing
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This is adapted from DealStreetAsia
Fairbanc, a Singapore- and Silicon Valley-based B2B embedded finance startup that operates in Indonesia, has announced securing $13.3 million in debt financing.
The startup secured the financing from the Indonesian state-backed Pegadaian‘s digital lending arm, which operates under Bank Rakyat Indonesia, according to the announcement.
The funding comes less than two years after Fairbanc, founded in 2019 by Wharton alum Mir Haque, raised $4.8 million in its pre-Series A funding led by Vertex Ventures Southeast Asia and India and backed by Lippo Companies, Asian Development Bank, and Accion Venture Lab.
Per the announcement, Fairbanc will use the fresh funding to expand its operations with off-balance sheet financing through its new BNPL gateway.
Fairbanc, which was piloted in Bangladesh with Unilever before it was rolled out in Indonesia in 2021, enables MSMEs to purchase inventory on BNPL credit in partnership with large consumer brands. It has already onboarded over 550,000 merchants on its platform.
It earlier said that its service does not require collateral, credit history, smartphone ownership, or digital literacy. It uses the supply chain data of FMCG distributors to automate credit scoring and risk monitoring to extend working capital.
With the fresh funding, Fairbanc is making a bigger push into Indonesia, where 95 million adults still lack a formal account at a financial institution.
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