Fairbanc (PT Fairbanc Technologies Indonesia), a Singapore- and Silicon Valley-based B2B embedded finance startup operating in Indonesia, has announced securing 50 billion rupiah (about $3 million) in loan financing from Indonesia’s state-owned venture capital Bahana Artha Ventura (BAV).
The productive loan aims to expand access to capital for Fairbanc’s partners. The loan is expected to be disbursed during the first quarter of 2025.
Fairbanc, which was piloted in Bangladesh with Unilever before it was rolled out in Indonesia in 2021, enables MSMEs to purchase inventory on BNPL credit in partnership with large consumer brands. It has already onboarded over 550,000 merchants on its platform.
Fairbanc’s partners include vendors serving large-scale companies in sectors such as FMCG, healthcare, pharmaceuticals, and other industries with extensive customer networks.
Its BNPL service does not require collateral, credit history, smartphone ownership, or digital literacy. It uses the supply chain data of FMCG distributors to automate credit scoring and risk monitoring to extend working capital.
Fairbanc founder and CEO Mir Haque said, “This collaboration offers a tremendous opportunity to empower millions of underserved entrepreneurs by providing them with short-term financing options and driving economic growth.”
This is the second financing secured by Fairbanc this year. In March 2024, the company bagged $13.3 million in debt financing from Indonesian state-backed Pegadaian’s digital lending arm, which operates under Bank Rakyat Indonesia.
Founded in 2019 by Wharton alum Mir Haque, Fairbanc raised $4.8 million in its pre-Series A round led by Vertex Ventures Southeast Asia and India and backed by Lippo Companies, Asian Development Bank, and Accion Venture Lab.
Meanwhile, BAV is a subsidiary of PT Bahana Pembinaan Usaha Indonesia (Persero), commonly known as Indonesia Financial Group (IFG), a state-owned enterprise (SOE). BAV provides financing to MSMEs through venture capital schemes.
