skorlife, the fintech that wants to help Indonesians be more transparent about their credit scores, has raised $4 million in seed funding. The round was led by Hummingbird Ventures with participation from QED Investors and returning investors AC Ventures and Saison Capital.
The last funding round of the startup is $2.2 million in pre-seed funding announced in September. Co-founded by Ongki Kurniawan and Karan Khetan, Skorlife went public at the same time.
Since then, it has reached 100,000 downloads. Other major milestones Skorlife has achieved over the past eight months include becoming the only credit builder company that has been admitted to the regulatory sandbox by Indonesia’s Financial Services Authority (OJK) and received ISO 27001 and ISO 27701 certificates.
Skorlife’s app shows users credit scores and reports from Indonesia’s credit bureaus, and offers personalized advice on how they can improve their credit and stay safe from identity theft. For example, it will remind them to pay their bills, improve their credit mix, and track their credit period. It also offers Identity Monitoring, which will alert users when someone tries to use their identity to apply for a loan.
Kurniawan told TechCrunch that many Indonesians have limited access to fair credit because banks and financial institutions tend to be very cautious about approvals due to the lack of infrastructure and strong credit scoring data. strong. As a result, low-interest credit products, including credit cards, are often only available to people with the highest credit scores or super primes. Subprime lenders, on the other hand, are served by peer-to-peer lending and buy-now, post-pay for platforms, but these platforms tend to have high interest rates.
This puts people in the middle, with basic or near-primary credit, who have a good repayment history but still don’t cut back on affordable credit products. Skorlife helps by providing Indonesian consumers with access to their scores from Indonesian credit bureaus, along with personalized advice on how to improve them.
Skorlife will work with local regulators as part of OJK’s regulatory sandbox, giving them more flexibility in planning their business model. Its new funding will be used for product development, marketing and recruitment.