Credit Saison, a Japan-based firm that delivers digitalized and localised financial services to the underserved market in Southeast Asia and India, has invested US $80 million in Indonesia-based fintech startup JULO.
Credit Saison has completely financed this investment using a mix of $30 million in stock and $50 million in debt.
The firms indicated in a news release that the investment round was organised in a two-pronged manner to boost JULO’s development.
By employing extra expertise across their developer, data scientist, and business intelligence teams, the $30 million equity will be utilised to further JULO’s analytics, product development, marketing, and customer acquisition strategies. Meanwhile, the $50 million debt would be used to help the platform fund loans.
Credit Saison noted that as the startup’s only corporate investor with a worldwide loan operation, it will play an active part in JULO’s hyper-growth phase and give governance guidance as the firm expands. Both firms will also look into potential expansion prospects in other emerging areas.
The investment will help Credit Saison speed its entry into the Indonesian market. Saison’s investment strategy expands on the company’s current activity in emerging areas.
Financing, the company’s venture capital arm, focuses on finding firms that have the potential to develop embedded financial capabilities.
“Credit innovation requires a deep understanding of local consumer behaviours and needs in order to truly improve the financial health of all. JULO has emerged from the past few years as a resilient and COVID-19-proven business with more than US$300 million in disbursements under its belt to date. We look forward to joining hands with them in this next phase of growth to accelerate financial products that will drive truly meaningful change for individuals in Southeast Asia,” said Kosuke Mori, Senior Managing Executive Officer and Head of Global Business at Credit Saison.
JULO was one of the first companies in Indonesia to provide a virtual credit card. It released a digital credit card in 2021, claiming that 97% of customers used non-cash features to top up e-wallets, top-up phone credits, pay utility bills, and process payments on e-commerce sites.
In February, it secured $60 million in a Series B fundraising round.
Skystar Capital, Saratoga Investama, East Ventures, Quona Capital, Central Capital Ventura, MDI Ventures, Gobi Partners, and others are among its investors.
