Indodana lands $39M HSBC facility to expand Indonesian BNPL

What's the deal? Indonesian financing firm Indodana FinanceDealroom has a profile for this one. Try Dealroom → has secured a lending facility worth US$45.6M (roughly $39 million) from HSBC IndonesiaDealroom has a profile for this one. Try Dealroom →. The capital will fund the expansion of its Indodana PayLaterDealroom has a profile for this one. Try Dealroom → buy now, pay later (BNPL) service across Indonesia.

What's the endgame? Indodana wants to widen access to financing for people underserved by traditional banks. It currently reaches online and offline merchant and retail networks across 180 cities and regencies in Indonesia.

Why now? Indodana obtained its financing licence from the Financial Services Authority (OJK) in August 2023. The HSBC facility gives it the capital to push BNPL deeper into the country's regions.

President director Mira Wibowo said the funding would contribute to "the healthy and responsible growth of financing for the community," while broadening access across Indonesia (translated from Indonesian).

HSBC Indonesia banking director Steve Andoko framed the deal as backing providers that offer financing "easily accessible to all levels of society, which may not have been affordable by conventional banking."

The signal: A global bank channelling capital into a local BNPL lender points to appetite for financial inclusion plays in Southeast Asia's largest economy, where a large share of the population remains outside the conventional banking system.

Read more: voi.id

Image credit: Generated with Gemini