Regional FinTech VC Fintonia Group led the funding round with participation from a consortium of regional institutional investors including Indonesia’s Reliance Modal Ventura.
SINGAPORE – CredoLab, an innovative financial technology provider of first-of-its-kind mobile-based credit risk management solutions for consumer lenders in regional emerging markets, today announced that it has raised more than US$1million to date, following a significantly oversubscribed Pre-Series A funding round. The company closed its most recent fundraising round after receiving overwhelming investor interest offering, in total, twice the amount of capital it originally sought to raise. The funding round was led by regional FinTech venture capital firm Fintonia Group, with additional participation from a consortium of regional institutional investors including Indonesia’s Reliance Modal Ventura.
As part of the funding round, Fintonia Group Chairman & CEO Adrian Chng has joined CredoLab’s Board of Directors. Chng co-founded CredoLab and was formerly the CEO of JobsDB, who led the well-known regional job portal into an A$1billion merger with JobStreet. CredoLab’s Co-Founders Peter Barcak and Greg Krasnov possess immense financial expertise, having built one of the leading consumer banks in the CIS (Commonwealth of Independent States) from scratch and sold it for close to a net capital gain of US$100 million for the institution’s investors. Barcak also serves as CredoLab’s Chief Executive Officer.
CredoLab utilises its proprietary mobile application, CredoApp, to extract a unique digital footprint from a consumer’s mobile phone. These completely anonymised digital footprints are developed into highly predictive digital credit scorecards using proprietary technology and know-how. CredoLab is able to improve both the availability of credit to those with no or limited banking history, as well as allow a lender to reduce their cost of risk and increase their approval rate.
For the underbanked populations of Asia’s emerging markets, such as Indonesia, the Philippines, Malaysia, Thailand, Vietnam and Myanmar, the availability of a credit score without an existing credit or collateral history helps to expand their economic opportunities, by giving them access to funds from microfinance institutions and commercial lenders. Financial institutions in these markets also stand to gain greater control over their lending decisions and expand their pool of qualified borrowers with little or no credit history.
Founded in 2016, CredoLab has been on a rapid growth trajectory. Within a short period of time, it has expanded its client base to more than 10 financial institutions in multiple markets across the region, and set to increase its client portfolio by more than two-fold in the next six months. With a strong order book, the firm is expected to generate more than a million credit scores by the end of the year and reach profitability by the end of 2017, within 9 months from the launch of its product.
CredoLab Co-Founder and CEO Peter Barcak commented: “The strong investor interest from this fundraising round is a market validation of our product and our growth vision. By addressing the huge market demand for financing in emerging markets, CredoLab is seizing a leadership position in advancing credit access and filling the void created by the banking infrastructure and logistical challenges in the developing world. With this strong support from our investors, we will further develop revolutionary financial technology products and solutions that could further expand the reach of our client institutions to serve the underbanked population.”
CredoLab Co-Founder and Fintonia Group Chairman and CEO Adrian Chng commented: “By focusing on financial technology for underserved consumers and businesses in emerging markets in Asia, Fintonia Group has become a regional leader in inclusive finance venture building. Through investing in CredoLab and other financial technology and data analytics companies, we aim to build a holistic ecosystem for financial technology that advances financial inclusion for underserved consumers and businesses in emerging markets across Southeast Asia.”
CredoLab is a financial technology provider of innovative, highly predictive, mobile-based credit scoring solutions for consumer lenders. Its proprietary mobile application CredoApp is based on an innovative credit assessment technology that generates digital credit scorecards using completely anonymized digital footprints extracted from the consumer’s mobile phone with full customer consent and guaranteed data anonymity. CredoLab’s solutions promote financial inclusion by enabling lenders to focus on the previously unbanked populations with a high degree of control over the credit risk. Its technology solutions harness the power of predictive analytics across big data as well as traditional data sets, to deliver superior risk assessment capability. Headquartered in Singapore, CredoLab serves clients across multiple markets in Asia.
About Fintonia Group:
Fintonia Group is a regional venture capital and alternative assets fund management firm with an investment focus on financial technology, particularly enterprises that advance financial inclusion for underserved consumers and businesses in emerging markets across Asia. With a strong portfolio of financial technology and data analytics companies, Fintonia is a regional leader in inclusive finance venture building.