Kredivo parent firm FinAccel to list in the US through $2.5b SPAC deal

FinAccel, the parent company of Indonesian buy now, pay later (BNPL) service Kredivo, has announced plans to go public in the US through a deal with a special purpose acquisition company (SPAC), VPC Impact Acquisition Holdings II.

FinAccel’s deal with the SPAC, a Victory Park Capital-sponsored entity, is expected to close no later than the first quarter of 2022 and will value the fintech company at US$2.5 billion.

FinAccel’s team / Photo credit: FinAccel

The transaction is expected to result in more than US$430 million of cash for the combined company, including a US$120 million private investment in public equity led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and Victory Park Capital, plus a US$55 million equity commitment from existing investors Naver and Square Peg.

FinAccel plans to use the fresh funds to fuel Kredivo’s growth in Indonesia, expand to other Southeast Asian countries, and enter new business lines.

Founded in 2016, FinAccel claims Kredivo has become the largest and fastest growing BNPL platform in Indonesia with almost 4 million approved customers. The company said its total users doubled in the last 10 months, with annualized revenue also rising 2x in the past seven months. FinAccel plans to expand into Vietnam and Thailand in the near future.

In late 2019, FinAccel raised US$90 million in series C funding from Square Peg and Asia Growth Fund (a joint venture between Korea’s Mirae Asset and Naver), reportedly bringing its valuation to US$500 million. It also counts Jungle Ventures, GMO Internet, Openspace Ventures, Cathay Innovation, and Telkom Indonesia’s MDI Ventures as its investors.

A partnership between Victory Park Capital and FinAccel started in July 2020, when the private credit firm provided a US$100 million credit facility for the BNPL platform and upsized it to US$200 million in June 2021.