Singapore-headquartered FinTech Company Raises US$6.7 million in Series A Round

DigitalCFO Newsroom | 1 September 2022

Through its digital platform – banco, the firm delivers sector-focused and green financing solutions for MSMEs in Southeast Asia.

Singapore-headquartered fintech company banco (RABC Group) yesterday announced the successful raise of US$6.7M in Series A funding led by Japan-based leading financial group SBI Group, alongside investors Sumitomo Mitsui Banking Corporation (SMBC), R3, Savills, KZM & Company, and others.

With this fundraise, banco will look towards recruiting talents with technology and business development expertise, as well as market expansion within Southeast Asia.

Founded in 2018, banco (RABC Group) is headquartered in Singapore with subsidiaries in China and Japan. The banco platform leverages the digital capabilities of the RABC group’s expertise in Micro, Small and Medium Enterprises (MSME) lending and close industry partnerships, to develop sector-focused and sustainable financial solutions for MSMEs.

“We are excited to lead banco’s Series-A fundraising together with our strategic partners, SMBC and R3. There would be collaborations among SBI, SMBC, R3, and banco, to offer more inclusive financing solutions and achieve ESG targets for SMEs in Asia. We believe that banco will grow to be the leader in its sector.” says Yoshitaka Kitao, CEO, SBI Holdings.

The SBI Group, founded in 1999, has achieved significant growth by offering varieties of financial services beneficial to consumers by riding the two major trends of “financial deregulation” and the “Internet Revolution.”

“With this new round of fundraising, we are looking to the future where the group can use our existing fintech capabilities to build better sustainable financial infrastructure for MSMEs in Asia, and to expand regionally. We are excited, yet humbled by the trust and support from our clients, partners, and investors as we develop new capabilities and unlock new opportunities in this financial transformation era. In Southeast Asia, MSMEs contribute more than 50% of ASEAN countries’ GDP, but still face challenges with securing financing to cover the needs of their business. As ASEAN is adapting to climate change, it is increasingly important to ensure that MSMEs are included and incentivised to become greener and sustainable. Technology and new data-driven financial products will play an important role in improving the access to sustainable finance for MSMEs.” said Lincoln Yin, Co-founder & CEO, banco (RABC Group).