Skor Technologies, the parent company of Indonesia-focused Skorlife and the new Skorcard credit card, has raised $6.2 million in its latest Pre-A round.
Argor Capital, a Southeast Asia-focused venture capital firm, led the round, Skor Technologies said in a statement on Tuesday.
Its previous investors, QED Investors and Saison Capital, and new investor the Digital Currency Group also participated in the round, bringing the total capital raised to over $12 million for the fintech company.
Skor Technologies has a clear vision of 2 million cards but set clear sights for 2025, where they expect to cross $100 million in transaction volume.
The capital raised will be focused on helping the business achieve scale while growing the team with key talents across the organization.
“From eWallets, BNPL to QRIS, fintech players and the regulators have played a tremendous role in innovation – digitizing payments and giving more people access to credit; both play a critical role in setting the foundational requirements for consumers to adopt credit-line as a ‘lifestyle; product,” said Ongki Kurniawan, Co-founder and Chief Executive Officer of Skor.
“We believe Indonesia is a supply constrained market for the credit-line product, and it is the right time to solve this growing consumer need, starting with a digital-first credit card,
“The opportunity to build a 2 million card base customer exists, and along with our bank partners we are incredibly motivated to make this a reality,” he added.
In May 2023, Skor closed a $4 million seed round, led by Hummingbird Ventures, with participation from Bolt by QED, and existing investors AC Ventures and Saison Capital.
At that time, the fintech company was focused on its credit-education product Skorlife but has launched a “digital-first credit card”, Skorcard, in March 2024, in partnership with Bank Mayapada International.
Over the past several months, the company has been focused on setting up the card operations and testing the card demand and take-up with users.
The startup also claims it leverages data in unique ways to assist and engage users.
In the first year of operation, Skorcard surpassed $10 million in annualized spending volume.
Skorlife, the credit-education platform, also surpassed 2 million downloads.
“We see tremendous potential for growth in the Indonesian consumer credit market and are excited to back Skor with its distinct product offerings and vastly experienced management team,” said Sid Pisharody, Partner at Argor Capital.
“Skor’s leadership team comprises individuals with complementary skillsets; together, the team has a combination of deep domain expertise, a thorough understanding of the pain points in the Indonesian consumer credit market, and a strong network of relationships in the financial services ecosystem,
“We are backing Skor to empower millions of Indonesians to improve their financial well-being while enhancing their access to credit,” he added.
Sandeep, Partner and Head of Asia at QED, said that Skor Technologies revolutionizes Indonesia’s financial landscape through their innovative digital-first credit card and credit education platform.
“Their remarkable progress in engaging customers, navigating
regulatory frameworks, and fostering strategic partnerships demonstrates the strength of their vision,
“As the company enters its next growth phase focused on scaling its credit card offerings, we are energized by the phenomenal potential ahead,” he added.
Skor Technologies has also been strengthening its team. Kush Srivastava joined the business as the third co-founder, bringing a wealth of experience in fintech and technology with his past stints as Co-founder of Card91.
Meanwhile, Kirill Odinstov joins as Chief Revenue Officer and Head of Data Science. Odinstov was Head of Underwriting at HomeCredit Indonesia.
Surendra Singh who was Head of Data at Fi, another fintech startup, also joins Skor to head data analytics.
It is noted that the credit card market opportunity in Indonesia remains immense with huge potential upside.
Credit card penetration remains below 3 percent, which is extremely low even compared to regional peers like Thailand or Malaysia where it is at 8 percent and 20 percent, respectively.
Furthermore, a 2022 national survey by OJK indicated that financial literacy amongst Indonesians was less than 50 percent, and much less know what their credit score is or how to improve it.
This lack of awareness coupled with high credit rejection rates leaves consumers confused and frustrated.
Despite the large market potential, Skor said it has had to overcome several barriers including navigating regulations, building a robust proprietary risk framework, and competing offerings by banks and other fintech players to deliver its products and services.
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