Kredivo, the leading digital credit platform for retail borrowers across Indonesia, announced today that it has secured a debt facility of up to $100 million from Victory Park Capital (“VPC”), a leading global alternative investment firm, to fund consumer loans for Kredivo’s borrowers in Indonesia.

The deal marks major milestones for both firms: the transaction is VPC’s first in Southeast Asia and Indonesia overall. For Kredivo, it is the largest deal in its history with a credit provider and represents one of the largest ever credit lines secured by any digital credit platform in the region.

“We look forward to our partnership with Kredivo, as the company presents a unique combination of growth, scale, risk management and financial inclusion in one of the most exciting emerging markets in the world,” said Gordon Watson, partner at VPC. “We are very pleased to anchor our first investment in this region with a business of this caliber and one that is deeply passionate about enabling low-cost access to credit to the mass market.”

The transaction will further propel the tremendous momentum that Kredivo has established, with strong growth and risk metrics, even in this year’s challenging macro environment. Kredivo will use the funds to grow and further diversify the funding of its loan book, all of which is third party generated.

“The capital made available via this facility will enable us to scale the business even further and bring us closer to our goal of serving up to 10 million customers in Indonesia within the next few years,” said Umang Rustagi, CEO of Kredivo Indonesia. “We believe that the size and complexity of this facility represents major breakthroughs for Indonesia's tech and fintech ecosystem. The entire Kredivo team is extremely pleased to have secured a partnership with VPC, a renowned and sophisticated credit provider active in our space globally.”

The transaction represents a major milestone for the digital credit ecosystem in Indonesia and Southeast Asia. With less than 3% of its population in possession of a credit card, and banks historically cautious about providing unsecured credit to the mass market, digital credit providers such as Kredivo have been making efforts to fill the gap. While the unsecured credit industry is primarily fueled by peer-to-peer lending models, the transaction between Kredivo and VPC represents a significant departure from the norm, and a sign of the growing institutional credibility of emerging fintech players.