HONG KONG SAR -
Media OutReach Newswire
- 10 September 2024 - YUP, the credit payment platform established by
Singaporean startup Finture, has successfully raised US$30 million in
its Series B funding round. The round was led by Hong Kong-based venture
capital firm MindWorks Capital, with participation from XVC, SWC
Global, Richen Pioneer, and Antao Capital. The funds will support market
expansion in Southeast Asia and preparation for acquiring a banking
license in Indonesia.
Finture is a Singapore-based fintech company with offices in Shanghai,
Singapore, and Jakarta. Established in 2021, Finture operates its
digital bank and credit payment business in Southeast Asia. Its flagship
product, YUP, serves working-class users with stable incomes in
Indonesia. The platform has partnered with over 40 million merchants
nationwide, serving millions of users and processing tens of millions of
transactions. YUP is projected to reach US$1 billion in transaction
volume by 2024 and has already received over US$77 million in equity
funding from investors, including the Sampoerna family, Sky9 Capital,
BitRock Capital, etc.
Expanding Credit Card Access in Indonesia
YUP targets 80 million working-class individuals in Indonesia with
stable incomes and regular social securities. Donny Zhang, Co-founder
and CEO of Finture, stated, "While Southeast Asia's fintech sector is
experiencing rapid growth, personal payment solutions have lagged
behind. Many individuals still lack access to basic credit card services
offered by traditional banks. In Indonesia, where the credit card
penetration rate stands at just 2%, we firmly believe that every
consumer with a stable income deserves access to a credit card."
Digital payments now account for over 50% of transactions in Southeast
Asia, with a total gross transaction value (GTV) of US$959 billion in
2023
[1]. YUP's credit card services, including both physical
and virtual cards, are well-positioned to meet this demand. As the only
tech firm in Indonesia to sign a strategic partnership with VISA, YUP
has secured Indonesia's highest-level payment license (E-Money), lending
license, and fintech innovation licenses. The company is now planning
to invest in Indonesian banking license.
All-in-One Service Platform Collaborating with Top Merchants
In addition to credit card services, YUP is collaborating with leading
global and Indonesian merchants to introduce the "Lifestyle in Your
Pocket" concept to Southeast Asia. The platform integrates lifestyle,
consumption, and financial services, covering various daily spending
scenarios. YUP's merchant partners include Indonesia's largest retail
group MAP (operating brands such as Starbucks, Nike, Adidas, Zara,
Sephora, Boss, CK, etc.), VISA, KFC, Korean cinema chain CGV,
Indonesia's leading convenience store chains Indomaret and Alfamart,
Haagen-Dazs, British Petroleum, Indonesia's largest taxi platform
Bluebird, Family Mart, and others.
YUP's founding team brings extensive experience from top financial
institutions and companies such as Bank of America, China Merchants
Bank, Bank of Communications, Discovery, and Ant Group. Co-founder and
CEO Donny Zhang transitioned from management consulting at Accenture to
fintech, becoming a venture capitalist and entrepreneur with nearly a
decade of experience in the Southeast Asia fintech sector. Co-founder
Matt Zou, a specialist in personal credit management, has worked at the
Bank of Communications' credit card center and ANZ Bank's credit card
operations across Indonesia, Thailand, and the Philippines. He also
served as Chief Risk Officer at Advance.ai and co-founded Atome, a
leading BNPL brand in Southeast Asia.
Doubling Its Valuation and Future Expansion
Despite a slowdown in the Asian funding landscape, with total venture
capital investment falling to US$14.6 billion in Q2 2024—a 56% decline
from the same period in 2022 and a 32% decrease year-over-year
[2]—YUP
has secured US$30 million in equity investment, and its valuation has
doubled. Gavin Guo, CFO of Finture, highlighted three key points that
made YUP stand out from its peers. First, YUP's business model has a
clear trajectory of future growth, similar to players in other emerging
markets, such as Brazil's Nubank. Secondly, YUP's deep expertise in
Southeast Asia, with all senior management and over 80% of employees
based in Jakarta, gives it a strong local presence. Thirdly, YUP's solid
business and financial performance have been crucial in the current
challenging market. "Companies need to excel to justify their valuations
in challenging times. We've consistently seen positive unit economics
and strong customer lifetime value (LTV) over the past three years,"
said Guo.
YUP plans to extend its innovative financial products to Hong Kong,
Vietnam, and the Philippines. The company will open a new office in Hong
Kong to oversee capital market activities and recruit R&D talents,
with the possibility of relocating its headquarters from Singapore to
Hong Kong in the future. YUP aims to serve 50 million users over the
next 8 to 10 years, positioning itself as Southeast Asia's leading
digital banking service platform with plans for a U.S. IPO in the next 3
to 5 years.
[1] Google, Temasek, and Bain & Company, "e-Conomy SEA 2023" report:
https://www.bain.com/insights/e-conomy-sea-2023/
[2] CrunchBase Q2 2024 Asia Startup Funding Report:
https://news.crunchbase.com/ai/asia-venture-42dot-hozon-zepto-china/
https://yup.finture.id/enhttps://www.linkedin.com/company/finture-tech