Singapore-based GoBear acquires digital consumer lender AsiaKredit
By Digital News Asia May 4, 2020
- AsiaKredit has processed over 1 mil loan applications via its flagship pera247 app
- Acquisition introduces LaaS to GoBear’s network of more than 100 partners
Singapore financial supermarket GoBear on 4 May 2020 announced the acquisition of end-to-end digital consumer lender AsiaKredit. The acquisition is part of GoBear’s plans to expand its business and regional reach, following its announcement last year of having cumulatively raised US$80 million.
In a press release, GoBear notes that the acquisition is also to accelerate their plans to drive growth through digital lending, one of their three key business pillars alongside digital insurance brokerage and the company’s financial supermarket.
Singapore-based AsiaKredit provides finance products to underserved consumers in the Philippines. Through its flagship mobile app, pera247, the company has processed over 1 million loan applications via fast and convenient lines of credit not provided by traditional banks.
Utilising robust risk management and automation, the app can make credit assessment decisions in a matter of minutes, and bring time-to-cash disbursements in hours. AsiaKredit has seen more than 100x growth in loans disbursed in the last two years.
“The establishment of an industry-leading lending business is a critical component of GoBear’s strategy to support our banking partners in providing loans to the many underserved consumers in Asia,” comments GoBear chief executive officer Adrian Chng (pic, left).
“With AsiaKredit’s sophisticated data-driven underwriting and collections capability, which sets them well apart from lenders in the region, the acquisition will allow GoBear to accelerate strategic plans by giving us access to end-to-end digital lending capabilities.”
The startup fills a gap in Southeast Asia, where access to credit remains a challenge. According to a Bain & Company study, more than 70% of the adult population of the region are currently underbanked or unbanked. Access to credit will become more important in the wake of the COVID-19 pandemic.
GoBear believes the acquisition will improve financial inclusion by introducing lending as a service (LaaS) to its network of more than 100 partners, helping them provide loans to underserved consumers in Southeast Asia and Hong Kong. It will also see the expansion of a direct consumer lending service through pera247.
“Both GoBear and AsiaKredit share a vision to offer accessible and responsible financial services to those across the region. This acquisition represents a fantastic opportunity for AsiaKredit to leverage GoBear’s regional presence and expand the reach of our credit lending services to Southeast Asia and Hong Kong’s underserved consumers. We are excited to take the AsiaKredit platform beyond the Philippines in the next phase of our growth,” says Mike Singh, AsiaKredit cofounder and CEO.