Honest Reaches $100 Million in Equity Funding to Innovate Credit Card Sector in Indonesia

Honest Secures $100 Million in Equity Funding

In a significant boost for the fintech landscape of Southeast Asia, Honest, Indonesia's fastest-growing credit card issuer, has successfully closed an impressive growth funding round. The investment round, which was led by Orico, saw an oversubscription that highlighted the strong interest from several major investors, bringing Honest's total equity funding to $100 million. Furthermore, the company also secured an additional $40 million through debt financing via Mizuho Bank.

With only a minuscule percentage of Indonesian consumers owning credit cards—less than 3%—Honest is poised to change the landscape of credit accessibility. This latest influx of capital will enable the company to expand its flagship product, the Honest Card, into corporate and co-branded offerings. This strategy draws parallels with successful models like Nubank, Ramp, and Imprint in the Americas but is tailored to meet the unique demands of the Asian market. Honest's innovative model allows them to launch co-branded cards within weeks and approve over 90% of applicants—far exceeding the capabilities of traditional banks in Indonesia, which frequently take years for product launches and have notoriously low approval rates of about 5%.

Makoto Umemiya, President and Representative Director of Orico, commented, “Indonesia’s credit card market holds enormous potential, and Honest is well-positioned to leverage this growth with its innovative approach. We are excited to support the company in its journey to become a market leader and transform financial services for millions of Indonesians.” Orico, recognized as one of Japan’s top credit card companies and a part of Mizuho Financial Group, is banking on Honest's future trajectory in this high-potential sector.

Ross Fubini, Managing Partner at XYZ Venture Capital, expressed excitement about the venture, stating, “We’ve never seen anything quite like Honest. It’s the first truly digital credit card in the region that resonates with customers. Honest has tackled issues that traditional banks have neglected, and the enthusiasm from users is palpable.” Notably, Fubini, who has earned a spot on the Forbes Midas List, will join Honest’s board, making XYZ the company’s second-largest investor, following Orico.

A Brief Overview of Honest

Founded in 2023, Honest has quickly emerged as the frontrunner in Indonesia's credit card issuance domain, positioning itself for future growth with ambitions of filing for an IPO in the U.S. market before the year 2030. The company's leadership includes founders Peter Panas, a former VP of Product for Apple Card at Goldman Sachs, and Will Ongkowidjaja, co-founder of Alpha JWC, a prominent venture capital firm in Indonesia.

What sets Honest apart is its unique acquisition of GE Finance Indonesia in 2022, which granted it the exclusive license to issue credit cards in the country, a feat not shared by any other fintech firm in the region. With a roster of investors that includes prominent players from the U.S. and Japan, such as XYZ Venture Capital, Village Global, and Rakuten, Honest is uniquely positioned to revolutionize the financial landscape in Indonesia. Notable individuals, including David Vélez, founder of Nubank, have also backed Honest, showcasing the trust and potential seen in its innovative approach to financial services.

As Honest sets its sights on revolutionizing credit accessibility in Indonesia, the latest funding round marks a crucial step in its strategy to not only grow its user base but also to redefine users' experiences with credit lending in emerging markets. Through cutting-edge technology and a customer-first approach, Honest is undeniably on track to become a significant player in transforming financial services across the region.