Kredivo Agrees to SPAC Merger With VPC Impact Acquisition Holdings II
Singapore – August 4, 2021 – Cooley advised FinAccel, the parent of artificial intelligence-enabled digital consumer credit platform Kredivo, on its agreement to merge with VPC Impact Acquisition Holdings II (VPCB), a special purpose acquisition company (SPAC) sponsored by Victory Park Capital (VPC), which will result in Kredivo becoming a publicly traded company on Nasdaq. Partners Ferish Patel, Matthew Bartus, Rama Padmanabhan and Will Cai led the Cooley team advising FinAccel on the transaction, which marks the largest fintech deSPAC transaction in Asia.
Upon completion of the transaction, which is expected to close in Q1 2022, the combined company’s anticipated pro forma equity value is approximately $2.5 billion. The deal will result in more than $430 million in cash on the combined company’s balance sheet, reflecting a contribution of up to $256 million in cash held in VPCB’s trust account and a committed $120 million in a private investment in public equity (PIPE) led by Marshall Wace, Corbin Capital Partners, SV Investment, Palantir Technologies, Maso Capital and sponsor VPC, with a concurrent equity commitment of $55 million from existing FinAccel investors Naver and Square Peg.
“As the top buy now, pay later platform in Indonesia, Kredivo is an established force in the large and rapidly growing point of sale financing market,” Akshay Garg, co-founder and chief executive officer of FinAccel, said in a news release. “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 fulfill our vision of providing fast, affordable and easily accessible credit to tens of millions of customers in the region.”
Founded in 2016, Kredivo provides customers with instant credit financing for ecommerce and offline purchases. With nearly 4 million approved customers and a presence across eight of the top 10 ecommerce merchants in Indonesia, it is the largest and fastest-growing buy now, pay later platform, with plans to expand into regional markets such as Vietnam and Thailand in the near future.
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