23 Jan 2019
DEALSTREETASIA : SG fintech firm Credit Culture raises $29.5m from RCE Capital Berhad
SG fintech firm Credit Culture raises $29.5m from RCE Capital Berhad 

Visa credit cards are displayed in Washington October 27, 2009. REUTERS/Jason Reed

Singapore-based fintech firm Credit Culture has raised $29.5 million (S$40 million) in a pre-Series A funding round from RCE Capital Berhad, a Malaysian-listed investment holding company.

According to an official statement, RCE Capital will purchase five-year bonds issued by Credit Culture with debt securities in return to be secured against loan receivables from Credit Culture. The coupon rate for the first half of the investment will be at 10 per cent per annum.

Credit Culture was also reported to have granted call options to RCE Capital, giving them the right to take a stake of up to 30 per cent in the fin-tech startup. This will make RCE Capital the second largest shareholder in Credit Culture, after the company’s own founders. The call options also allow RCE Capital to take up further stakes in the company.

Credit Culture last raised $2.9 million (S$4 million) from a seed investor who owns 20 per cent in Dey Pte Ltd, Credit Culture’s parent company. The investor is understood to be Lee Kwok Bun.

Credit Culture claims to be the first Singapore fintech startup to provide digital solutions for personal loans. Its system relies on data from Singapore’s credit bureau to assess credit-standing. It also taps on cloud technology to reduce processing costs. Credit Culture also removes penalties for early repayment.

Credit Culture plans to expand manpower count from 12 to 30 with the majority of the staff in the technology division.