Fairbanc Secures Funding from ADB Ventures, Accion Venture Lab, and Sampoerna to Scale Indonesian's Micro Merchant's Access to Embedded Credit Product
PR90340
Fairbanc Secures Funding from ADB Ventures, Accion Venture Lab, East Ventures, and Sampoerna to Scale Indonesian's Micro Merchant's Access to Embedded Credit Products
JAKARTA, Indonesia and SINGAPORE, June 29, 2021 /PRNewswire=KYODO JBN/ --
Fairbanc(https://fairbanc.app/) announced it has raised an undisclosed seven
figures investment in a pre-Series A from ADB
Ventures(http://ventures.adb.org/), the Asian Development Bank's venture arm,
Accion Venture
Lab(https://www.accion.org/how-we-work/invest/accion-venture-lab), East
Ventures(http://east.vc/), Michael Sampoerna Group, and others. This new
financial backing comes on the heels of recent investments from 500 Startups
and Indonesian billionaire Michael Sampoerna. This funding will enable Fairbanc
to scale up credit access for Indonesia's small retailers, many of whom
struggle to access working capital.
The World Bank estimates Indonesia's micro, small, and medium enterprises
(MSMEs) have a US $166 billion unmet need for credit. Fairbanc partners with
large Fast-Moving Consumer Goods (FMCG) companies to offer a 'pay-later' option
through its AI-powered credit scoring that allows instant microcredit
decisions. The credits help the unbanked and underbanked merchants with revenue
growth by enabling them to increase inventory.
According to Fairbanc Founder and CEO Mir Haque, "what makes Fairbanc so unique
compared to other fintechs is that it plugs into large consumer brands like
Unilever's vast merchant networks to offer 'Buy Now Pay Later' credit to tens
of thousands of retailers without requiring any loan applications or
smartphones. System integration into consumer brands' distribution app allows
Fairbanc to access merchants' order and payment history, which in turn, allows
Fairbanc to utilize advanced data science and machine learning to underwrite
credit and grow merchant's sales while keeping loan defaults and operating
costs very low."
Since Fairbanc's inception in 2019, the startup has partnered with major FMCG
firms, including Unilever, L'Oréal, and Danone, to help MSMEs grow their sales
by over 35% while limiting nonperforming loans to near-zero.
"Fairbanc is empowering and future-proofing the many unbanked grocers who
distribute Unilever products, a large percentage of whom are female," said
Francisca Ho, Head of Customer Development Finance at Unilever Indonesia.
Fairbanc's mission of financial inclusion "is aligned with Unilever's purpose
to enhance the livelihoods of millions of people as we grow our business".
With nearly 60,000 merchants in its network, Fairbanc will deploy the new
investment to expand its distributor partners and strengthen its sales and
technology teams. The company is also developing a product recommendation
system with new features, including timely alerts to help merchants plan
inventory in advance of climate events, for which Indonesia is at high risk.
"Fairbanc has shown us that it has what it takes to bridge the finance gap for
Indonesia's many small retailers," said Daniel Hersson, Senior Fund Manager at
ADB Ventures. "The company's inventory financing and experienced leadership
sets it apart in a crowded fintech market and makes Fairbanc an important ally
on our mission to accelerate financial inclusion and support climate resilience
in the Asia Pacific region."
"The pandemic is far from over in Indonesia, and micro merchants are uniquely
vulnerable to its economic impact. Fairbanc is filling a critical gap in access
to credit for these entrepreneurs, helping them keep their shops open and
sustain their livelihoods," said Michael Schlein, President and CEO of Accion.
"By embedding their product into existing partner channels, Fairbanc is able to
provide micro merchants seamless access to much-needed inventory financing
solutions. Fairbanc's work aligns strongly with our mission of supporting
inclusive fintechs, and we look forward to working with the team to reach more
micro and small businesses across Indonesia," said Paolo Limcaoco, Southeast
Asia Investment Officer at Accion Venture Lab.
"Supporting Fairbanc is aligned with our mission to bring financial inclusion
to millions of unbanked merchants in Indonesia. We believe Fairbanc is a strong
addition to accelerate supply chain financing adaptation in Southeast Asia,"
said Melisa Irene, Partner of East Ventures.
Fairbanc's CEO is Mir Haque, who previously held roles at McKinsey & Company,
Deutsche Bank, and Adobe, and its Chief Technology Officer is Kevin O'Brien,
formerly CTO of the micro-credit platform Kiva. The company's Head of
Operations is Siswanto Hadiprayitno, who has over twenty years of sales and
executive experience at Indonesia-based corporations including Unilever
Indonesia, Mead Johnson Indonesia, and Tiga Raksa Satria.
Media Contact
Mir Haque: mir@fairbanc.app
SOURCE Fairbanc
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