FinAccel is a new company that aims to take down traditional finance companies proposing a different approach: enabling a credit line for online purchases.
The company is based in Jakarta, Indonesia, and essentially acts as a layer between its credit card and lending company partners and consumers buying online.
Started last year by Akshay Garg, who founded ad tech firm Komli, ex-McKinsey consultant Umang Rustagi, and Alie Tan, formerly of a number of startups, the company has raised an undisclosed seed round, which TechCrunch understands to be more than $1 million, led by Jungle Ventures to get started.
The idea behind FinAccel is to disrupt the credit industry by enabling consumers to reap the benefits with a model that fits today’s digital era.
Initially in Indonesia only, customers have 30 days to repay the amount at no added cost, but the startup is planning to introduce credit card-style payback plans soon.
We are basically putting a virtual credit in hands of five to 10 million people in next five years[…].
We want to go hard against the consumer finance companies,” Garg said. “There’s a crazy amount of bullshit marketing in the industry today” justifying the willingness to take down traditional finance companies
The goal, he explained, is more than just beating existing finance companies, FinAccel wants to unlock new consumer spending opportunities, particularly in the ecommerce space.
FinAccel has plans to be present across Southeast Asia’s six main countries with an expansion that will likely kick off next year starting with Thailand.
The lack of credit cards in emerging markets like Southeast Asia is one of the major hurdles that online commerce companies are facing.
A version of this appeared in TechCruch on June 1. Read the full article here.