Indonesian credit card issuer Honest has closed an equity round led by Orico, a leading Japanese credit card issuer and part of Mizuho Financial Group—one of the world’s largest banks with assets worth trillions of dollars—according to the company’s statement on Wednesday.
According to the press release, existing backers, including XYZ Venture Capital, SV Pacific Ventures, and Village Global, returned to back the startup in the financing round, alongside new US investors such as Gilgamesh Ventures. In parallel, Honest also secured a $40 million credit facility from Mizuho Bank.
Post-investment, XYZ Venture Capital has become its second-largest investor, next only to Orico.
The company did not disclose the exact size of the latest round, and the new funding has yet to appear in filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
The company said the fresh financing was oversubscribed and brings Honest’s total equity funding to $100 million since inception.
DealStreetAsia’s DATA VANTAGE estimates the amount raised is around $35 million, based on its last reported total funding of $65.1 million.
Ross Fubini, Managing Partner at XYZ Venture Capital, said, “Honest has solved problems that conventional banks couldn’t. You can see it in the way people talk about the product—they’re genuinely excited about it.” Fubini will join the company’s board.
Credit penetration in Indonesia remains low, with only 3% of the population owning credit cards. Honest aims to expand access by broadening its flagship Honest Card offering to include corporate and co-branded credit cards, modelled on players like Nubank, Ramp, and Imprint in the US but tailored for Asia.
“Indonesia’s credit card market holds massive potential, and Honest is well-positioned to lead its growth with an innovative approach. We are excited to support Honest as a long-term strategic partner and help drive its journey to reshape financial services for millions of Indonesians,” said Makoto Umemiya, President and Representative Director of Orico.
Honest says it can roll out co-branded cards within weeks, with approval rates above 90%—in stark contrast to conventional Indonesian banks, which often take years to launch such products and approve fewer than 5% of applicants.
Founded in 2023 by Peter Panas—former VP of Product for Apple Card at Goldman Sachs—and Alpha JWC co-founder Will Ongkowidjaja, Honest claims to be the only fintech in Indonesia licensed to issue credit cards, following its 2022 acquisition of GE Finance Indonesia. Honest has stated its ambition to go public in the US before 2030.
A few days ago, its competitor, Finture Group (Yup), received $32 million in a Series C1 funding round from US investors Moore Strategic Ventures, Spice Expeditions, and Platanus, with participation from existing and institutional backers. That round brought Finture’s total funding since its 2021 launch to over $100 million.
