FinAccel, the Singapore-based parent company of Indonesian fintech startup Kredivo, has agreed to register in the United States through a merger with blank check company VPC Impact Acquisition Holdings II as part of a deal that values the combined entity at $ 2.5 billion.
The backdoor listing will raise more than $ 430 million in gross proceeds, including $ 120 million from a private placement from investors such as Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital and Victory Park Capital, sponsor of VPC Impact, the companies said in a joint statement. statement Monday. An additional $ 256 million will come from VPC Impact’s trust account, while $ 55 million has been committed by existing investors Naver and Square Peg.
The new financing will support Kredivo’s continued growth in Indonesia, plans to expand into regional markets, including Vietnam and Thailand, as well as investments in new lines of business, the companies said. There is a huge opportunity for Kredivo in Southeast Asia, where around 66% of the population has no or limited access to banking services, said FinAccel co-founder and CEO Akshay Garg.
Founded in 2015, Kredivo is the largest and fastest growing buy now, pay later, or BNPL, platform in Indonesia, where it has four million approved customers and a presence in eight of the 10 largest e-commerce merchants in the country.
“Kredivo is an established force in the large and rapidly growing market for point-of-sale financing,” Garg said. “Unlike Western markets where credit is readily available, traditional Southeast Asian banks have historically provided little consumer credit in our markets, creating a great opportunity for Kredivo to tap into other needs. credit, such as personal loans. “
The merger between FinAccel and VPC Impact, expected to be finalized in the first quarter of 2022, follows a $ 29 billion deal between Twitter co-founder Jack Dorsey’s Square and Australian platform BNPL Afterpay that promises to create a giant global market for payments. Demand for BNPL services has grown rapidly as consumers stuck at home during the Covid-19 pandemic have turned to online shopping.
Chicago-based Victory Park Capital, sponsor of specialist acquisition firm VPC Impact, began investing in Kredivo at the height of the pandemic with an initial investment of $ 100 million in July 2020. It doubled the investment to $ 200 million in June and committed a further $ 30 million to FinAccels’ concurrent private placement.