- HSBC Singapore commits $100 million in debt financing to Akulaku.
- The funds will refinance existing debts as Akulaku overcomes regulatory hurdles in its BNPL operations.
- Akulaku thrives amidst BNPL consolidation, backed by notable investors.
HSBC Singapore has committed up to US$100 million in debt financing to Akulaku, an Indonesia-based online lending platform.
Shaun Sakhrani, head of structured banking for Southeast Asia at HSBC Singapore, stated that the deal reinforces the bank’s commitment to supporting new economy businesses as they grow and expand across the region.
Overcoming regulatory hurdles
The new financing will be used to pay off some of Akulaku’s current debts, according to a Reuters report citing CEO William Li.
This development comes on the heels of Indonesia’s Financial Services Authority (OJK) lifting restrictions on Akulaku’s buy now, pay later (BNPL) service, which had previously faced limited operations due to alleged violations of supervisory obligations required by the OJK for BNPL offerings.
Thriving amidst BNPL consolidation
Akulaku’s latest funding follows its US$200 million raise from Japan’s Mitsubishi UFJ Financial Group in December 2022, adding to the support it has received from other notable backers such as Siam Commercial Bank and Ant Financial.
The company’s services extend beyond BNPL to include virtual credit cards, wealth management offerings, and digital banking services through Bank Neo Commerce.
This development comes amidst several exits from the BNPL space across the region, including Bukalapak’s closure of its staggered payment offering BukaCicilan, ShopBack’s discontinuation of its paylater service, and Pace’s filing for liquidation in November last year.
To read the original article: https://www.techinasia.com/hsbc-injects-100m-debt-financing-akulaku-ceo
