Ivitech

Ivitech is developing alternative scoring models for system financing of small and medium-sized businesses.

History

2023

Indonesia Market Entry

IVITECH on April 12, 2023 announced that it is helping the ride-hailing industry (taxis and courier transportation) in Indonesia to switch to eco-friendly electric bikes. The company supports Indonesia's state initiative to reach 2.5 million users of electric transport by 2025.

In 4 months, IVITECH has gone from registering a company in Singapore to first driver deals and partnerships with major bike manufacturers. To localize the company on the market, it is important to take into account cultural characteristics, for example, in Muslim society it is impossible to sell credit as a service. The team changed the business model several times, hired the first locale, and almost learned to speak Bahasa (Indonesia's national language).

Indonesian drivers ride bikes from 5 to 10 years old, constantly fix and experience difficulties with maintenance. IVITECH offers a vehicle subscription service with further acquisition of ownership. This will increase the number of customers and make travel comfortable and safe for passengers.

The volume of the ride-hailing segment in Indonesia is $7 billion, in Southeast Asia the total volume is $13 billion. To begin with, we decided to focus on Indonesia as the largest market. In Indonesia, confusing regulatory, demands often contradict each other and. After several breweries, we adapted the processes and attracted the first partners and investments. For April 2023, our team is testing the model and further plans to scale it in other countries: Vietnam, Thailand, Singapore, Malaysia, the Philippines, - said Artem Moskalev, co-founder of IVITECH.

Receiving investments from the venture capital fund "Kirovsky Zavod"

Fintech-startup Ivitech (LLC "Ivitek") attracted investment from a venture capital fund Kirov Plant of St. Petersburg Kirov Group Ventures (KGV). The amount raised was not disclosed. Under the terms of the transaction, the fund receives a share of 4.1% in Ivitek LLC TAdviser , KGV representatives said on March 17, 2023.

Fintech startup Ivitech attracted investments from the Kirov Zavod venture capital fund
Illustration: talentsprint.com

Ivitech develops alternative scoring models for systemic financing of SMEs. The company operates under the revenue based financing model. The funds raised will be used to scale the service among underfunded industries in Russia and abroad. The KGV team is already helping Ivitech with business development in Indonesia, where the startup already has its first revenue.

According to Kirov Group Ventures, 65 million medium and small enterprises annually receive $5.2 trillion for development. This figure is 41% of the global segment of SMEs. The greatest difficulties are experienced by industries that do not lend themselves to a classic banking risk assessment: taxi, agro-industrial, trunk logistics, Marketplaces-sellery and others. According to experts, in Russia by 2035 the niche of alternative lending will reach $178.6 billion.

Ivitech has developed its scoring model that predicts solvency and potential customer default risk. The basis of the model is alternative data sources: ride-hailing platforms (i.e. platforms for ordering a taxi, approx. TAdviser), marketplaces and others.

"Our technology allows you to work with customers limited in bank financing due to the difficulty in assessing risks for the specific market in which they operate. So, for example, the industry with which we started is taxi: any taxi company can leave an application on our platform, and we will independently assess the level of risk. As a result of the assessment, the business gets access to financing of operating activities. Investments will allow us to scale the service and improve the customer experience, "said Artem Moskalev, co-founder of the Ivitech fintech service.

According to representatives of the startup, investments from Kirov Group Ventures will be aimed at increasing the Ivitech product line, developing a personal account and creating a single interface. In turn, this will improve the user experience and simplify communication with customers. Additional funding will also expand the capabilities of the service for companies from the field of trunk logistics.

"We are seeing the demand for alternative funding grow dynamically. The expertise of the Ivitech team helps entrepreneurs get resources and direct them to business development. Investments will scale the service among new sectors of the economy and provide support for more underfunded SMEs in Russia and abroad, "said Oleg Bochtarev, Managing Director of Kirov Group Ventures.