Indonesian BNPL Platform Kredivo Poised for an IPO Through US$2.5 Billion SPAC Deal

Indonesian BNPL Platform Kredivo Poised for an IPO Through US$2.5 Billion SPAC Deal

by August 3, 2021

FinAccel, the parent company of Buy Now, Pay Later (BNPL) platform Kredivo, plans to go public through a special purpose acquisition company VPC Impact Acquisition Holdings II (VPCB) sponsored by Victory Park Capital (VPC), valuing it at US$2.5 billion.

VPC, a global investment firm headquartered in Chicago, has a long-standing relationship with Kredivo will be providing an initial US$100 million credit facility to the company in July 2020 and upsizing it to US$200 million in June 2021.

It is expected to result in over US$430 million of cash on the combined company’s balance sheet, reflecting a contribution of up to $256 million of cash held in VPCB’s trust account.

Additionally, institutional investors committed US$120 million in a PIPE led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor VPC, with a concurrent equity commitment of US$55 million from existing FinAccel investors NAVER and Square Peg.

FinAccel has been backed by high-quality investors including Square Peg, Mirae Asset, NAVER, Jungle Ventures, GMO Internet, and Telkom Indonesia.

Kredivo is said to have nearly 4 million approved customers today and a presence across eight of the top 10 e-commerce merchants in Indonesia, with plans to expand into regional markets such as Vietnam and Thailand in the near future.

News of this IPO comes on the heels of Square’s acquisition of Australia’s Afterpay in an all-stock deal worth approximately US$29 billion.

Akshay Garg, Co-Founder and CEO of FinAccel.

Akshay Garg

“Unlike Western markets where credit is readily accessible, traditional banks in Southeast Asia have historically provided little consumer credit in our markets, which creates a large 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.”

said Akshay Garg, Co-Founder and CEO of FinAccel.