Kredivo Group, the Indonesia-based buy now, pay later and fintech company, has acquired Vietnam-based digital bank Timo, according to Tech in Asia, based on sources familiar with the matter.

The report indicated that final paperwork has been signed, though the deal has not yet been formally announced. Financial terms remain undisclosed for the Kredivo Timo acquisition.

Kredivo plans to invest approximately US$15 million in Vietnam over the next three years, targeting one of Southeast Asia’s fastest-growing fintech markets.

Kredivo Group’s co-founder and CEO, Akshay Garg, will purportedly oversee operations of the combined entity. The Timo brand is expected to be retained, with Kredivo’s Vietnam operations consolidated under it over time.

The integration will unfold in two phases: first, migrating Kredivo’s lending technology into Timo’s platform, followed by the introduction of card-based payment products.

Phoenix Holdings, an early Timo backer, is expected to retain its stake following the deal.

Timo currently operates in partnership with Viet Capital Bank, as Vietnam does not issue standalone digital banking licences.

Featured image edited by Fintech News Singapore based on an image by Zay Win Htai on Freepik