FinAccel, a Singapore-based credit financing firm, has announced a merger with VPC Impact Acquisition Holdings II (VPCB), a Victory Park Capital (VPC)-sponsored special purpose acquisition company (SPAC), in order to go public in the United States.
Kredivo, an Indonesian purchase now, pay later (BNPL) marketplace, is owned by FinAccel. It offers quick credit financing for e-commerce and offline purchases, as well as personal loans, based on proprietary, AI-powered real-time judgments.
FinAccel is valued at around US$2.5 billion as a result of the deal.
Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor Victory Park Capital are projected to contribute around US$430 million in gross funds.
By Q1 2022, the merger should be completed.
Kredivo’s ongoing growth in Indonesia, expansion into regional markets, and entry into new business lines will all be aided by the public offering.
Kredivo is a digital credit card payment platform that was founded in 2016 and offers a variety of payment alternatives to assist clients split large payments into smaller, more manageable instalments. It provides low-interest loans to its customers. The entire application and approval procedure may be completed in about two minutes.
The site is aimed towards the Indonesian middle class, which is constantly expanding. It has over 4 million authorised consumers and is present in eight of the archipelago’s top ten e-commerce shops.
In the near future, the company intends to grow into regional markets such as Vietnam and Thailand.
Akshay Garg, co-founder and CEO of FinAccel, said. “Unlike Western markets where credit is readily accessible, traditional banks in Southeast Asia have historically provided little consumer credit in our markets. So it creates a significant opportunity for Kredivo to tap into other credit needs, such as personal loans, and fulfill our vision of providing fast, affordable, and easily accessible credit to tens of millions of customers in the region. ”
“Considering that 66 per cent of Southeast Asia’s population is unbanked or under-banked, we also see an attractive opportunity to serve these customers with other financial services, outside of credit,” he added.
Victory Park Capital is a Chicago-based worldwide investing business. VPC has a long-standing connection with Kredivo, having provided the firm with a US$100 million credit facility in July 2020, which was then increased to US$200 million in June 2021.
In addition, VPC and its Limited Partners have committed to a two-year lockup on their sponsor shares after investing roughly $30 million in the Private Investment in Public Equity (PIPE).
In March 2021, VPCB completed its first public offering.
Gordon Watson, co-CEO of VPCB and Partner at VPC, said: “Kredivo has created a unique platform that enables it to expand into new markets. In addition, its world-class management team has a proven ability to not only execute on its strategy but also revolutionize fintech across Southeast Asia.”
FinAccel is backed by high-quality investors, including Square Peg, Mirae Asset, NAVER, Jungle Ventures, GMO Internet, and Telkom Indonesia.