August 2 (Reuters) – FinAccel on Monday agreed to go public through a merger with a blank check company, valuing the Indonesian platform’s parent company to buy now, later pay Kredivo around $ 2.5 billion, another sign of consolidation in the rapidly growing sector.
The deal follows that of Square Inc SQ.N switch to buy buy now, pay later pioneer Afterpay Ltd APT.AX for $ 29 billion, underscoring the popularity of the business model that has exploded over the past year, with homebound consumers using it to borrow and spend online during the pandemic.
FinAccel Agreement with VPC Impact Acquisition Holdings II VPCB.O, a Special Purpose Acquisition Company (SPAC), brings gross proceeds of $ 430 million to the fintech company, including a $ 120 million private investment led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies PLTR.N, Maso Capital, and sponsor Victory Park Capital.
Kredivo, Indonesia’s Largest Buy Now and Ongoing Payment Platform, Provides Customers with Instant Credit Financing for E-commerce and Offline Shopping, as well as Personal Loans, on a Take-A-Go Basis real-time decision-making based on AI.
The company has nearly 4 million approved customers and a presence in eight of Indonesia’s top 10 e-commerce merchants, with plans to expand into regional markets such as Vietnam and Thailand in the near future.
FinAccel investors over the years include Square Peg, Mirae Asset, NAVER, Jungle Ventures, GMO Internet, and Telkom Indonesia.
SAVS are shell companies that raise funds through an initial public offering to introduce a private company to the stock exchange through a merger at a later date.
Goldman Sachs (Singapore) Pte is the financial advisor to Kredivo.
(Reporting by Noor Zainab Hussain in Bangalore; editing by Maju Samuel)
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