Private Equity Company Finstar enters APAC with USD150mm Fintech Commitment

Private Equity Company Finstar enters APAC with USD150mm Fintech Commitment

by December 14, 2017

finstar-logoInternational private equity firm Finstar announces its commitment to strengthen the Group’s position in the Asia- Pacific Region, adding to its fintech portfolio in line with its five-year plan to invest US$150 million in the financial technology space.

As a first step in implementing the investment plan, the Group commits to invest up to US$50 million in APAC`s consumer lending, providing funds to broaden Digital Finance International presence in mobile-first consumer finance in South-East Asia. Roll-out of DFI operations in several large Asian economies is planned for the near future.

DFI’s ethos centres on responsible lending, enabling consumers in developing markets to access a method of financing that is transparent, affordable and fully compliant with requisite financial services regulation and best international practice. Finstar’s five-year investment plan, adopted in July 2017, aims to strengthen the Group’s holdings in innovative consumer technologies, and increase its portfolio exposure to high growth emerging markets across Europe, Latin America and Asia-Pacific.

Oleg Boyko, Finstar’s Executive Chairman and Founder, comments on Finstar’s investment into Asia and DFI:

Oleg Boyko

Oleg Boyko

“We’re thrilled to announce our latest investment commitment in DFI and Southeast Asia. The rapid growth in consumer demand across the Emerging Markets offers exciting opportunities for fintech-enabled disruptive lending technologies. With our market-expertise, Finstar can capitalize on these emerging trends.

DFI’s strong proposition, high-quality management and excellent governance all reflect Finstar’s key principles and foundations. Our outlook is one of optimism and excitement, and we’re confident in seeing our investment deliver significant value for the long term, not just for Finstar but for billions of consumers worldwide.”

According to KPMG*, in Q3’17 fintech investment in Asia grew to over $1 billion for the first time this year, despite a drop-off in the number of fintech deals. Total global fintech funding was a strong US$8.2 billion in Q3’17, after more than doubling to US$9.3 billion in Q2. Although deal volume declined, the US$8.2 billion of investment stood well above the $6.3 billion raised in Q3’16.

Venture capital (VC) investment in fintech in Q3’17 saw a five-quarter high of $3.3 billion, although the total was well shy of the record $7.4 billion raised in Q3’15. Clearly, Asia remains a fintech center on the rise and one within which Finstar remains committed to playing an increasing part in for the future, both with DFI and its global fintech investment strategy.


Featured image via Finstar Facebook page