Singapore-based firm FinAccel is said to go public through a merger with a special purpose acquisition company, which will value the combined firm at about $2.5bn.
FinAccel, the parent of the Indonesian buy now, pay later platform Kredivo, will merge with VPC Impact Acquisition Holdings II, which is backed by Victory Park Capital.
Upon completion, FinAccel expects to receive gross proceeds of over $430m, which includes $120m via private investment in public equity led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor Victory Park Capital along with additional $55m investment from its existing investors NAVER and Square Peg.
Kredivo expects the deal to further its growth in Indonesian and regional markets and enable it to foray into new business lines.
Digital credit platform Kredivo leverages AI to gives customers instant credit financing for e-commerce purchases and personal loans at competitive interest rates.
FinAccel co-founder and CEO Akshay Garg said: “Considering that 66% of Southeast Asia’s population is unbanked or under-banked, we also see a very attractive opportunity to serve these customers with other financial services, outside of credit. We are proud to have the continued support of our longstanding investors in our pursuit to realize our long-term vision and growth strategy.”
VPCB Co-CEO and VPC partner Gordon Watson said: “Since our initial investment in 2020, we continue to be impressed by Kredivo’s rapid growth and strong credit metrics and unit economics.
“The company has created an impressive platform that enables it to expand into new markets. Its world-class management team has a proven ability to not only execute on its strategy but also revolutionize fintech across Southeast Asia.”
The proposed merger, which is expected to close by the first quarter of 2022, is subject to regulatory approval and other customary closing conditions.