Akulaku made a strategic investment into an Indonesian commercial bank

04.04.2019

mintosblog

Alibaba-backed Akulaku, one of the top-funded fintech startups in South East Asia, that joined the marketplace in February, has made a strategic investment into a listed Indonesian commercial bank this March.

Akulaku has already developed a fully compliant loan origination business as well as accumulated the biggest credit users base in the region. The investment will allow the ecosystem of the Akulaku Group to become more sustainable and competitive.

Targeted bank: PT Bank Yudha Bhati Tbk (the Bank) is an Indonesian SEC listed bank with more than 660 employees. The total asset value of the Bank is over EUR 300 million and has a market cap that exceeds EUR 100 million. After the investment, Akulaku will become the second biggest shareholder of the Bank. For Mintos investors, this means an even more sustainable and reliable return coming from investments in Akulaku loans.

On the business synergy side, a traditional commercial bank has the advantages of offering a larger customer base, competitive funding cost and a fully compliant licence. For Akulaku these are key synergies, as cross-selling opportunities supported with an additional funding source would help Akulaku streamline their large growth. In addition, the improvement in the business structure would make Akulaku more sustainable and financially healthy.

As a shareholder of the bank, Akulaku will use its cutting-edge financial technology to support the improvement of the banking infrastructure and risk assessment system. On the other hand, value-added bank services shall be provided to Akulaku’s existing customers and merchants, improving customer satisfaction and customer experience. In addition to direct synergies, the future investment income from the Bank will further improve the operating performance of Akulaku Group.

What Akulaku offers on Mintos:

– short-term loans of up to EUR 50 and instalment loans of up to EUR 200 issued in Indonesia;

– net annual returns of up to 10.5% for its loans;

– Akulaku has B+ Mintos Rating;

– Akulaku offers a buyback guarantee and will repurchase all loans delinquent for 60 days or more.