Skorlife, the fintech that desires to present Indonesians extra transparency into their credit score scores, has raised $4 million in seed funding. The spherical was led by Hummingbird Ventures with participation from QED Buyers, and returning traders AC Ventures and Saison Capital.
The startup’s final funding spherical was $2.2 million in pre-seed funding introduced in September. Co-founded by Ongki Kurniawan and Karan Khetan, Skorlife launched to the general public across the identical time.
Since then, it has reached 100,000 downloads. Different milestones Skorlife has hit over the previous eight months embody being the one credit score builder admitted by the Monetary Companies Authority (OJK) of Indonesia right into a regulatory sandbox, and receiving ISO 27001 and ISO 27701 certifications.
Skorlife’s app reveals customers their credit score scores and experiences from Indonesia’s credit score bureaus and offers customized recommendation on how they’ll enhance their credit score and preserve protected from id theft. For instance, it should remind them to pay payments on them, enhance their credit score combine and watch the age of their credit score. It additionally offers an Id Monitoring characteristic, which alerts customers when somebody tries to make use of their id to use for a mortgage.
Kurniawan advised TechCrunch that many Indonesians have restricted entry to honest credit score as a result of banks and monetary establishments are usually very conservative about approvals as a consequence of lack of a strong credit score scoring infrastructure and information. Consequently, low curiosity credit score merchandise, together with bank cards, are normally solely accessible to individuals with the very best credit score scores, or tremendous primes. On the opposite finish, subprime lenders are served by peer-to-peer lending and purchase now, pay later platforms, however these are likely to have excessive rates of interest.
This leaves individuals within the center, with prime or near-prime credit score, who’ve good compensation histories however nonetheless don’t make the lower for reasonably priced credit score merchandise. Skorlife helps by giving Indonesian shoppers entry to their scores from Indonesian credit score bureaus, together with customized recommendation on the right way to enhance them.
Skorlife will work with native regulators as a part of the OJK’s regulatory sandbox, which supplies it extra flexibility to plan its enterprise mannequin. Its new funding will likely be used on product growth, advertising and marketing and hiring.