Singapore-based XenCapital, the lending arm of Indonesian fintech unicorn Xendit, has secured a $50 million credit facility from alternative lender Helicap, according to a statement on Thursday.
The partnership aims to enhance financial access for underbanked businesses across Southeast Asia, the statement added.
Digital lending has been the most active fintech subsector in the region in 2023. Based on a report by YCP Solidiance, this sector is projected to grow by 33% this year and another 33% in 2025.
Moses Lo, co-founder and CEO of Xendit, said this collaboration will enable the company to expand its reach and provide much-needed capital to merchants, particularly in the Philippines and beyond.
David Z Wang, co-founder of Helicap, emphasised the alignment of their partnership, stating, “Our collaboration with XenCapital aligns perfectly with Helicap’s mission to improve capital access for underbanked businesses in Southeast Asia [..]”
XenCapital, launched in 2020, is an alternative investment platform enabling accredited investors access and liquidity in top-tier investment opportunities. It has disbursed over $700 million in loans in the region, utilising alternative data sources and risk-scoring criteria to provide tailored financial solutions to business’ specific operational needs and growth aspirations.
Its parent company, Xendit, is a payment gateway for businesses in Indonesia, the Philippines, Malaysia, and Thailand. It has empowered over 6,000 merchants, including big corporations like Samsung, Traveloka, OYO, Garuda Indonesia and Lazada.
To date, Xendit has raised over $500 million from global venture capital leaders, such as Coatue and Tiger Global Management. It claims to have processed over 300 million transactions.
Helicap, which connects global investors to private debt opportunities, aims to fill a $400 billion financing gap in Southeast Asia. Since 2018, the company has facilitated over $370 million in transactions employing a data-driven approach that involves evaluating millions of loan data.
Helicap recently secured an undisclosed investment as part of a Series B round led by Malaysia’s financial group Kenanga Group in exchange for an 8% stake, with participation from Saison Capital.
This company is also backed by notable investors, including Tikehau Capital, integrated Asian financial house PhillipCapital, East Ventures, Access Ventures, Voveo Capital, and leading Singapore property group Soilbuild Group Holdings.
