Indonesian BNPL giant Kredivo to go public via Spac merger

The owner of Indonesian buy now, pay later platform Kredivo is set to go public in a $2.5 billion merger with a special purpose acquisition company sponsored by Victory Park Capital.

FinAccel and VPC Impact Acquisition Holdings II have entered a definitive agreement that will see the BNPL firm secure gross proceeds of $430 million, including a private placement of $120 million.

Kredivo provides customers instant credit financing for e-commerce and offline purchases, as well as personal loans, based on proprietary, AI-enabled real-time decisioning. The firm has nearly four million approved customers in Indonesia and has set its sights on expanding to new markets such as Vietnam and Thailand.

Akshay Garg, CEO, FinAccel, says: “Unlike Western markets where credit is readily accessible, traditional banks in Southeast Asia have historically provided little consumer credit in our markets, which creates a large opportunity for Kredivo to tap into other credit needs, such as personal loans, and fulfil our vision of providing fast, affordable, and easily accessible credit to tens of millions of customers in the region.

“Considering that 66% of Southeast Asia’s population is unbanked or under-banked, we also see a very attractive opportunity to serve these customers with other financial services, outside of credit.”

Earlier this week, Square agreed to buy Australian BNPL firm Afterpay for $29 billion.

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