SINGAPORE: Chocolate Finance has secured US$15 million (S$19.20 million) in fresh funding, four months after ‘unusually high’ customer withdrawals wiped out nearly 40% of its assets under management.
The fintech company made the announcement on Thursday (July 24), saying the funds came from Nikko Asset Management, as well as returning investors Peak XV (formerly Sequoia Capital India and Southeast Asia), Prosus, Saison Capital, and the firm’s founder and CEO, Walter de Oude, as reported by Channel News Asia (CNA).
The new capital will go towards expanding the business in the region, starting with Hong Kong. The company recently got regulatory approval there and plans to launch in the first quarter of 2026.
Mr De Oude told CNA that the Hong Kong expansion is the company’s “logical next step” as it has similarities in regulation and tech infrastructure with the city-state. He also told Marketing-Interactive that while he anticipates a similar demand for simple financial solutions there, the company won’t be “copy-pasting” its Singapore playbook, as Hong Kong has its own “rhythm.” The brand also aims to connect with the younger generation there.
The announcement came after the company halted instant withdrawals following what it described as an “unusually high” number of withdrawal requests in March. The company later announced that customers will have to wait for three to six business days to receive their funds, following standard industry practice.
CNA reported that over a two-week span, users withdrew S$500 million, sharply cutting into 40% of the company’s S$1 billion asset base at the time.
Mr de Oude said the company’s assets under management have yet to fully recover but have reached nearly S$900 million, and it is getting closer to profitability.
He added that while customers currently need to wait up to three days for their withdrawals to be processed, instant withdrawals could be reintroduced in the future.
“We’re continuing to look (at) how we can innovate in that space as we roll out,” he said.
“But what we have found is that actually … up to three days for a withdrawal is good enough,” he added.
The March incident followed the quiet suspension of AXS payments on Chocolate Finance’s debit card, sparking backlash over opaque communication from the firm.
At the time, the company’s generous two-miles-per-dollar offer—covering categories usually excluded education fees and AXS payments—proved unsustainable, said Mr de Oude.
He noted that the mileage programme has been “pared back a little bit” to make it “more sustainable,” with customers still able to earn up to two miles per dollar but “without loopholes.”
“We’ve had to tweak things a little bit, around our communications and the understanding of our products and services,” he added. /TISG
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