Finture, a Singapore-headquartered virtual banking and credit payment services provider, is planning a Series C fundraising in 2025, according to two executives.

This upcoming funding effort is estimated to fetch around USD 100m, CFO Gavin Guo said, refraining from disclosing the target valuation and details regarding the new share offering.

The company, which operates YUP, a consumer finance tool that combines credit card and e-wallet features, hopes to attract new investors who can offer significant “strategic value” to propel its business growth, Guo said.

Donny Zhang, founder and CEO of Finture, said it intends to leverage on strategic investors’ resources to raise debt facilities from financial institutions for YUP’s loan disbursements. It aims to secure additional banking partners, with a goal of boosting its total funding capacity to over USD 200m by the end of next year. It has formed partnerships with more than five banks in Indonesia.

Apart from debt facilities, it is also seeking access to retail networking and market expansion opportunities to drive YUP’s growth, Guo noted.

The company plans to quintuple YUP’s user base from over 1m to more than 5m within the next three years, with a target of reaching approximately 10m customers by 2029, Zhang said.

YUP is also striving to achieve a monthly transaction volume of around 50m and a monthly gross merchandise value (GMV) of nearly USD 1bn. Currently, YUP processes over 1m transactions and generates more than USD 20m in GMV each month, Zhang added.

Guo told Mergermarket that the Series C fundraising plan remains fluid. While it has attracted interest from potential investors, it may consider a Series B+ round before next year, depending on the “strategic value” those investors can provide. Nonetheless, the company favors pursuing a formal Series C round.

Finture raised a USD 30m Series B round, led by MindWorks Capital, with participation from XVC, SWC Global, Richen Pioneer and Antao Capital, in August 2024.

The most recent funding round has pushed the company’s total capital raised to over USD 77m to date. Its previous flagship backers include Sky9 Capital, BitRock Capital, and the Putera Sampoerna Family, one of Indonesia’s 50 richest.

Indonesian buy in motion

Finture is seeking to allocate the Series B proceeds toward an acquisition in Indonesia, aiming to obtain a multi-finance license to lower its cost of funding and issue asset-backed securities (ABS), according to Guo.

The fintech startup is in discussions with a potential candidate, Guo said, declining to identify the exact target and deal size.

The company hopes to finalize the deal in the coming year, Guo said. However, it’s hard to predict a specific timeline, as approval from the country’s regulatory body may take around six to eight months, Zhang elaborated. Finture holds an e-money license, a lending license and an issuer license in Indonesia.

In addition to its Indonesian plans, Finture is gearing up to expand its market presence across Southeast Asia, with a particular focus on Vietnam and the Philippines, utilizing the fresh capital raised, Guo said.

Vietnam and the Philippines have been identified as prime target markets due to their substantial customer pools. The management team also believes that their extensive experience in the two markets will enable the company to establish a foothold effectively, Guo said.

Guo acknowledged that Vietnam is highly regulated while the Philippines is receptive to foreign industry players regarding license applications. To navigate the complexities of Vietnam, it is considering a new market foray into the country through strategic partnerships or acquisitions.

Hong Kong as regional hub

Finture is setting its sights on Hong Kong, motivated in part by the significant number of Indonesian workers in the city who require enhanced banking services, according to Guo.

The fintech startup plans to establish an office in Hong Kong focusing on investor relations and research and development (R&D) next year. This initiative will not only strengthen investor relationships, but also enable the company to attract talent from both Hong Kong and Shenzhen, Guo said.

Recognizing Hong Kong as a strategic regional hub, the company is assessing the possibility of relocating its head office from Singapore to Hong Kong in the long run, which is subject to the success of its expansion efforts, as per Guo.

Zhang noted the Series B funding will also be used to form new partnerships with various leading retailers. The company pins its hopes on the potential tie-ups to ramp up its customer acquisition and enlarge the benefits ecosystem built on its payment services.

As an example, Finture recently entered into a partnership with Indonesia’s largest lifestyle retailer MAP Group that provides exclusive discounts on everyday purchases throughout the country, Zhang said, MAP runs a wide array of globally recognized brands, such as Nike, Adidas, Starbucks, Domino’s and Lego in Indonesia.

The company has also set up an exclusive partnership with Visa in Indonesia, granting access to Visa’s extensive global merchant network, which includes over 130m merchants in more than 200 countries and territories worldwide, Zhang said.

It is also collaborating with a host of Indonesian retailers, including Alfamart, Indomaret, Hypermart, KFC and Häagen-Dazs, Zhang added.

IPO exit in 3-5 years

When asked about its exit strategy, Gua said Finture is considering a potential initial public offering (IPO) in the next three to five years.

The company has yet to determine a listing venue and is weighing options including the US, Hong Kong, and Singapore. A US listing is preferred as American investors tend to have a deeper familiarity with the credit-led digital bank business model, Guo remarked.

Established in January 2021 in Jakarta, Finture – a blend of “finance” and “future” – officially launched its flagship “YUP anywhere, PAY everywhere” credit card product YUP in October 2021, Zhang said.

The company positions YUP as a “challenger bank” targeting young consumers across Southeast Asia. Its credit card and e-wallet services enable users to make purchases and pay later with 0% interest within 40 days, and cover more than 40m merchants in the Indonesia market. Its payment services function as a “super app,” providing customers with a range of features, including bill payments, e-commerce shopping, and access to benefit program.

YUP facilitates everyday purchases across various sectors, including all online shopping, offline groceries, food and beverage (F&B), shopping malls, and fuel stations, Zhang said.

The company has established a diverse revenue model comprising three key streams – interest incomes, merchant discount rate (MDR) charges and cross-selling commissions.

Approximately 80% of its revenue is generated from interest income, with monthly rates ranging from 2% to 3%. MDR charges, which vary between 0.2% and 0.6% per transaction, contribute to the remaining revenue alongside cross-selling commissions, Zhang noted.

Zhang declined to disclose specific financial details but indicated that the company aims to achieve breakeven by mid-2025. Total revenues are expected to jump 5x to 7x in 2025, provided sales align with the projected 7x growth for 2024.

The two executives lead a team of 300, with offices in Shanghai, Singapore and Jakarta. The company operates in a unique vertical market in the sector, positioning itself without direct rivals in the region, Zhang commented.