SINGAPORE: Four months after suspending instant withdrawals due to surging demand, Chocolate Finance announced on Thursday (Jul 24) that it has secured US$15 million in fresh funding.
The funds were raised from Nikko Asset Management, returning investors Peak XV (previously known as Sequoia Capital India and Southeast Asia), Prosus, Saison Capital and Chocolate Finance’s founder Walter de Oude.
The fintech firm plans to use the capital to expand across the region, starting with Hong Kong, where it recently obtained regulatory approval to operate. It expects to launch there in the first quarter of 2026.
Expansion into Hong Kong is the “logical next step” given that the regulatory environment and technological infrastructure is similar to Singapore’s, Mr de Oude told CNA in an interview.
The company came under scrutiny in March when it halted instant withdrawals after receiving an “unusually high” volume of requests. Customers withdrew S$500 million (US$392 million) in about two weeks – wiping out around 40 per cent of its assets under management, which had hit US$1 billion the previous month.
Its assets under management have not fully recovered, but have hit nearly US$705 million, and profitability is "not too far off", he said.
Mr de Oude, who is the company’s CEO, said instant withdrawals are not currently “part of the recipe”, though it could be reintroduced in future.
“For the time being”, he said, withdrawals will follow a standard process of up to three days.
“We're continuing to look how we can innovate in that space as we roll out, but what we have found is that actually … up to three days for a withdrawal is good enough.”
The March episode came about after Chocolate Finance quietly suspended AXS payments on its debit card and customers accused the company of opaque communication.
At the time, the company was offering two miles per dollar on all spending – including education fees and AXS payments – categories where miles are typically excluded.
Customers were taking advantage of the scheme and it soon became “quite evident” that this was unsustainable, Mr de Oude said.
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The funds were raised from Nikko Asset Management, returning investors Peak XV (previously known as Sequoia Capital India and Southeast Asia), Prosus, Saison Capital and Chocolate Finance’s founder Walter de Oude.
The fintech firm plans to use the capital to expand across the region, starting with Hong Kong, where it recently obtained regulatory approval to operate. It expects to launch there in the first quarter of 2026.
Expansion into Hong Kong is the “logical next step” given that the regulatory environment and technological infrastructure is similar to Singapore’s, Mr de Oude told CNA in an interview.
The company came under scrutiny in March when it halted instant withdrawals after receiving an “unusually high” volume of requests. Customers withdrew S$500 million (US$392 million) in about two weeks – wiping out around 40 per cent of its assets under management, which had hit US$1 billion the previous month.
Its assets under management have not fully recovered, but have hit nearly US$705 million, and profitability is "not too far off", he said.
Mr de Oude, who is the company’s CEO, said instant withdrawals are not currently “part of the recipe”, though it could be reintroduced in future.
“For the time being”, he said, withdrawals will follow a standard process of up to three days.
“We're continuing to look how we can innovate in that space as we roll out, but what we have found is that actually … up to three days for a withdrawal is good enough.”
"MORE SUSTAINABLE" APPROACH
The March episode came about after Chocolate Finance quietly suspended AXS payments on its debit card and customers accused the company of opaque communication.
At the time, the company was offering two miles per dollar on all spending – including education fees and AXS payments – categories where miles are typically excluded.
Customers were taking advantage of the scheme and it soon became “quite evident” that this was unsustainable, Mr de Oude said.
Continue reading...