Heaptalk, Jakarta — Fintech Home Credit closed its financing volume worth US$596 million, approximately Rp9.3 trillion throughout 2023, multiplied by 11% compared to the former at US$539 million (around 8.4 trillion) in 2022. The company claimed that its innovative financing services, which 6.2 million users utilized, significantly boosted its growth last year.
“This achievement motivates us to continue providing financial services and opening new customer opportunities. We will continue to facilitate people to access financial services, which include goods financing, cash financing, pay later, and protection for more than 17.9 users registered on the Home Credit application in December 2023.” said the Chief Product Officer of Home Credit Indonesia, Manu Pal.
Home Credit’s insurance service has reached about 13 million client agreements by December 2023. The company has also collaborated with multiple insurance companies to proffer protection products, one of which is Critical Life Cover, to provide insurance against the risk of death or being diagnosed with a critical illness, which PT Equity Life Indonesia managed. On the other hand, this fintech company also affords a pay-later service, Home Credit BayarNanti, that has activated over 700,000 accounts.
In 2023, Home Credit expanded its financing service in more than 22,000 stores spread over 223 cities in the archipelago. Home Credit customers have used this service to bestow financing services for business capital, education costs, health, and home renovations. As a result, the company carried out around 1.2 financing transactions until December 2023.
Regarding funding achievement, Home Credit previously bagged new strategic funds worth US$100 million, approximately Rp1.5 trillion, from the Jakarta-based unit of MUFG Bank. The fresh injection will be fully allocated to amplify Home Credit’s sustainability intention through Environment, Social, and Governance (ESG)-based financing in December 2023.
This collaboration is Home Credit’s first strategic move with MUFG following the completion of the company acquisition process by the MUFG consortium led by Krungsri Bank and Adira Finance in early October 2023. In this strategic acquisition, the company shares have been purchased by Krungsri (75%), Adira (10%), and local partners (15%), with a total valuation of US$229 million, equal to Rp3.4 trillion.
