Atome Financial logs EBITDA profit in Q1 amid BNPL growth

Photo credit: Atome

Atome Financial, a digital financial services provider in Southeast Asia, saw major growth in 2023, with operating income rising from US$88 million to US$170 million.

Atome, the company’s buy now, pay later arm, handled nearly US$1.5 billion in gross merchandise volume (GMV) – a 40% jump from 2022. The increase in transactions led to a 130% revenue bump, pushing Atome into profit.

The company attributed the growth to improved efficiency, simplified processes, and expanded trade partnerships. Its ecommerce platforms TikTok Shop and Lazada as well as insurance major Chubb also boosted revenue and user numbers.

As it ventured into digital cash services, Atome Financial introduced new products. It launched the Atome PayLater Anywhere Card and Atome Cash loans in markets including Indonesia and the Philippines.

All in all, the company said that as a group, it turned EBITDA positive in the first quarter of 2024.

There were some headwinds on its way to this milestone, however. In October 2022, Atome Financial laid off some of its staff in Indonesia to slash costs. The company exited Vietnam in July 2023, saying the country’s “contribution to [its] overall business was limited.”

Its growth also comes after a slow 2022, when it posted a 9% dip in revenue to US$166.7 million, according to data from Alternatives.pe, which tracks filings in Singapore.

“The real ingredient of our success is our risk management capabilities,” Atome Financial CFO Trina Yeung told Tech in Asia.

Advance.AI, Atome’s sister company specializing in KYC digital identity and fraud prevention, enabled Atome to acquire expertise in KYC and credit scoring prior to entering the lending sector, according to Yeung.

Another key factor contributing to its success is scale, says Yeung. “If you have a good promotion network, then it attracts the users.”

Its current user base totals 10 million, encompassing both P2P lending and BNPL services.

While the company has its largest base in Indonesia, it is super excited about Malaysia and the Philippines as there is “much less competition in those markets,” said Yeung.

See also: ‘Buy now, pay later’ is not dead