Indonesia’s FinAccel acquires majority stake in local bank (Updated)

Update (Apr. 5, 10 a.m. SGT): This article was updated after the company announced the completion of the acquisition process.

FinAccel, the parent company of Indonesia-based buy now, pay later service Kredivo, has acquired a majority stake in publicly listed Bank Bisnis Internasional. Its ownership in the bank will increase from 40% to 75% after the process is completed later this week.

In a statement, FinAccel said that it has obtained all regulatory approvals for the acquisition.

FinAccel founders / Photo credit: FinAccel

According to an initial disclosure to the Indonesia Stock Exchange, the fintech firm bought 1.16 billion shares owned by existing shareholders Sundjono Suriadi, Sun Land Investama, and Sun Antarnusa Investment. FinAccel plans to transform Bank Bisnis International into a digital bank that targets small and medium-sized enterprises as well as the retail segment.

The fintech firm started its acquisition of Bank Bisnis Internasional in May 2021 when it bought a 24% stake for 551 billion rupiah (around US$38 million). Five months later, the company increased its ownership to 40% by buying shares from existing investors for 440 billion rupiah (around US$31 million).

Founded in 2016, FinAccel operates a BNPL service that allows customers to do online and offline transactions and pay for their orders in installments.

In August 2021, the company announced its plan to go public in the US through a merger with VPC Impact Acquisition Holdings II, a special purpose acquisition company owned by Victory Park Capital. However, it dropped the plan last month due to unfavorable public market conditions and process delays outside the control of both companies.

See also: Why Indonesia’s tech giants find digital banks irresistible

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,296 rupiah.