Southeast Asian fintech Akulaku, backed by Alibaba, secures US$100 million debt financing from HSBC Singapore to address existing debts and enhance profitability, emphasizing its improved financial health and commitment to sustainable growth. Despite regulatory challenges, Akulaku remains optimistic about its expansion plans in Indonesia, its primary market, aiming for increased revenue amidst fierce competition in the online lending sector.
22 March 2024 – Akulaku, a prominent Southeast Asian online lending platform backed by Alibaba, announced its successful acquisition of up to US$100 million in debt financing from HSBC Singapore. CEO William Li revealed that the funding will be utilized to settle existing debts and bolster the company’s profitability.
In a recent interview with Reuters, Li emphasized Akulaku’s improved financial health and stated that the company aims for overall profitability before considering further fundraising endeavors. HSBC Singapore expressed its commitment to supporting new economy businesses through its partnership with Akulaku, reinforcing its dedication to fostering financial innovation.
Since its inception in 2016, Akulaku has established a strong presence in the Philippines, Malaysia, Thailand, and Indonesia, the latter being its primary market due to its large tech-savvy population. Despite facing regulatory challenges, including a temporary ban in Indonesia last year for its “buy now, pay later” service, Akulaku remains optimistic about its growth prospects, aiming for a revenue increase of 16% to 25% this year.
With Indonesia contributing 90% of its total revenue, Akulaku plans to expand its physical presence in the country and recruit local senior bankers to support its operations. The company’s vision aligns with Indonesia’s projected economic growth of around 5% in 2024, providing a favorable backdrop for its ambitious targets and expansion plans. – ref: The Edge
