Kredivo to Become a Publicly Traded Company via SPAC

FinAccel, the parent of Kredivo, an AI-enabled digital consumer credit platform in Southeast Asia, and VPC Impact Acquisition Holdings II (NASDAQ: VPCB), a special purpose acquisition company sponsored by Victory Park Capital, entered into a definitive agreement for a business combination.

kredivo

This will result in FinAccel becoming a publicly traded company with an expected pro forma equity value of approximately $2.5 billion, assuming no redemptions.

Led by Akshay Garg, Co-Founder and CEO, FinAccel operates Kredivo, which provides customers instant credit financing for e-commerce and offline purchases, as well as personal loans, based on proprietary, AI-enabled real-time decisioning. With nearly 4 million approved customers today and a presence across eight of the top 10 e-commerce merchants in Indonesia, it is the largest buy now, pay later (BNPL) platform in Indonesia, with plans to expand into regional markets such as Vietnam and Thailand in the near future. Kredivo serves a target segment that comprises the middle class of Indonesia.

FinAccel has been backed by Square Peg, Mirae Asset, NAVER, Jungle Ventures, GMO Internet, and Telkom Indonesia.

Upon completion of the transaction, the combined company is expected to have a pro forma equity value of approximately $2.5 billion, assuming no redemptions. It is expected to result in over $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 (assuming none of VPCB’s stockholders redeem their shares), a $120 million concurrent private placement (PIPE) led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor VPC, with a concurrent equity commitment of $55 million from existing FinAccel investors NAVER (through NAVER Financial) and Square Peg.

The proposed business combination – unanimously approved by the respective Boards of Directors of Kredivo and VPCB, is subject to approval by VPCB’s stockholders, regulatory approvals and other customary closing conditions. The business combination is expected to close no later than the first quarter of 2022.

FinSMEs

04/08/2021