Lending platform Kredivo cancels $2.5 billion SPAC deal – Business


Bangalore, India ●
Tue 15 March 2022

technology, PSPC, business

VPC Impact Acquisition Holdings II said on Monday that the company and FinAccel, the parent company of the buy now, pay later Kredivo platform, have mutually agreed to terminate their $2.5 billion blank check agreement due to conditions. unfavorable market conditions.

The announcement comes at a time when volatility in the United States (US) market has peaked, triggered primarily by geopolitical tensions and rate hike fears.

“Adverse public market conditions and process delays beyond our control and those of Kredivo affected our transaction timeline and made it impossible to close the transaction,” said Gordon Watson, Co-Chief Executive Officer of the company. VPC Impact special purpose acquisition.

Pursuant to the terms of the Termination Agreement, Victory Park Capital (VPC) is leading a $145 million structured private investment in Kredivo.

The deal, first announced in August, was to fund Indonesia-based Kredivo’s international expansion in a bid to capitalize on the growing popularity and pandemic-driven boom of the buy now, pay later sector. .

SPACs, which offer an alternative route to listing stocks, have grown in popularity in 2020. But the sector has taken a hit, with several companies dropping deals, higher investor buyouts and tighter regulatory scrutiny since the start. ‘last year.

Last week, corporate transportation company Gett also scrapped its $1 billion blank check deal, citing market conditions.

SPACs are companies that are listed on the stock exchange but do not carry out any commercial activity. They use the pool of capital raised through an initial public offering to merge with a private company, in a deal that then takes it public.

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