kredivo investor presentation 2022

Kredivo, the Leading Digital Consumer Credit Platform in Southeast Asia, Announces Plans to Become a Publicly Traded Company via Merger with VPC Impact Acquisition Holdings II

Kredivo is the largest and fastest growing buy now, pay later platform in Indonesia, Southeast Asia’s largest economy, fueled by a rapidly growing middle class and e-commerce market

Institutional investors committed $120 million in a PIPE led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor Victory Park Capital, with a concurrent equity commitment of $55 million from existing FinAccel investors NAVER and Square Peg

Transaction assigns FinAccel, Kredivo’s parent company, an expected pro forma equity value of approximately $2.5 billion and is expected to deliver over $430 million of gross proceeds to the company

Public listing expected to enable Kredivo’s continued growth in Indonesia, expansion into regional markets, and the ability to enter new business lines

Investors [email protected]

Media Kevin Brown [email protected]

VPC Impact Acquisition Holdings II

Media Jordan Niezelski, Edelman [email protected]

Investors [email protected]

Kredivo Announces Plans to Become a Publicly Traded Company via Merger with VPC Impact Acquisition Holdings II

• Kredivo is the largest and fastest growing buy now, pay later platform in Indonesia, Southeast Asia’s largest economy, fueled by a rapidly growing middle class and e-commerce market
• Institutional investors committed $120 million in a PIPE led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor Victory Park Capital, with a concurrent equity commitment of $55 million from existing FinAccel investors NAVER and Square Peg
• Transaction assigns FinAccel, Kredivo’s parent company, an expected pro forma equity value of approximately $2.5 billion and is expected to deliver over $430 million of gross proceeds to the company
• Public listing expected to enable Kredivo’s continued growth in Indonesia, expansion into regional markets, and the ability to enter new business lines

SINGAPORE, JAKARTA, Indonesia & CHICAGO–( BUSINESS WIRE )–FinAccel, the parent of Kredivo, the leading AI-enabled digital consumer credit platform in Southeast Asia, and VPC Impact Acquisition Holdings II, a special purpose acquisition company sponsored by Victory Park Capital , today announced that they have entered into a definitive agreement for a business combination that will result in FinAccel becoming a publicly traded company with an expected pro forma equity value of approximately $2.5 billion, assuming no redemptions.

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. With nearly 4 million approved customers today and a presence across eight of the top 10 e-commerce merchants in Indonesia, it is the largest and fastest growing buy now, pay later (BNPL) platform in Indonesia today, with plans to expand into regional markets such as Vietnam and Thailand in the near future. Kredivo serves a target segment that comprises the rapidly growing middle class of Indonesia, with interest rates that are amongst the lowest in the country, and an application and approval process that takes as little as two minutes.

Kredivo has a track record of being a superior solution for online and offline merchants. With less than 10% of the middle class in Indonesia in possession of a credit card, merchants partner with Kredivo to help increase customer spend. Surveyed merchants that partner with Kredivo experience more than double the average basket size, up to three times more frequent transactions, and over 50% of these merchants say Kredivo helps increase cart conversion rate during checkout.

“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,” said Akshay Garg, Co-Founder and CEO of FinAccel. “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. 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. We are proud to have the continued support of our longstanding investors in our pursuit to realize our long-term vision and growth strategy.”

Victory Park Capital, a global investment firm headquartered in Chicago, has a long track record of executing debt and equity financing transactions with some of the largest, most innovative global fintech companies. VPC and Kredivo have a long-standing relationship, with VPC providing an initial $100 million credit facility to the company in July 2020 and upsizing it to $200 million in June 2021. In addition, VPC and its limited partners have invested approximately $30 million into the PIPE and are committed to a two-year lockup on their sponsor shares, unless otherwise accelerated based on average trading performance measures beginning one-year following the closing. VPCB completed its initial public offering in March 2021.

“Since our initial investment in 2020, we continue to be impressed by Kredivo’s rapid growth and strong credit metrics and unit economics,” said Gordon Watson, Co-CEO of VPCB and Partner at VPC. “The company has created an impressive platform that enables it to expand into new markets. Its world-class management team has a proven ability to not only execute on its strategy, but also revolutionize fintech across Southeast Asia.”

FinAccel has been backed by high-quality investors including Square Peg, Mirae Asset, NAVER, Jungle Ventures, GMO Internet, and Telkom Indonesia.

Kredivo Highlights

• Operates within a fast-growing e-commerce market (over 20% per annum) with the potential for $145B NMV by 2025
• Accelerating growth momentum with total user base doubling in the last 10 months and annualized revenue doubling in the last seven months
• Market leader with at least 50% BNPL wallet share across most of the major Indonesian e-commerce merchants
• Average customer transacts 25x per year on the platform, a far higher engagement rate than global peers
• Globally proven open-loop payments model with attractive unit economics
• Deep regulatory moat with licenses in core and expansion markets
• Proprietary AI-enabled risk models and collections processes delivering risk metrics in line with banks’, and the ability to scale risk models in other similarly credit deficient regional markets
• Brings demonstrable value and has a track record of being a superior solution for online merchants with 100% digital UX and automation
• Durable growth vectors with a clear pathway to synergistic expansion opportunities

Key Transaction Terms

Upon completion of the transaction, the combined company is expected to have a pro forma equity value of approximately $2.5 billion, assuming no redemptions. It is expected to result in over $430 million of cash on the combined company’s balance sheet, reflecting a contribution of up to $256 million of cash held in VPCB’s trust account (assuming none of VPCB’s stockholders redeem their shares), a $120 million concurrent private placement (PIPE) led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor VPC, with a concurrent equity commitment of $55 million from existing FinAccel investors NAVER (through NAVER Financial) and Square Peg.

The proposed business combination has been unanimously approved by the respective Boards of Directors of Kredivo and VPCB, and is subject to approval by VPCB’s stockholders, regulatory approvals and other customary closing conditions. The business combination is expected to close no later than the first quarter of 2022.

A more detailed description of the business combination and a copy of the Business Combination Agreement will be included in a Current Report on Form 8-K to be filed by VPCB with the United States Securities and Exchange Commission (the “SEC”). VPCB will also file a registration statement (which will contain a proxy statement/prospectus) with the SEC in connection with the business combination.

Goldman Sachs (Singapore) Pte. is serving as financial advisor and Cooley LLP is serving as legal advisor to Kredivo. Citigroup is serving as capital markets advisor to VPCB and Citigroup, Jefferies, and Goldman Sachs (Singapore) Pte. are serving as co-placement agents on the PIPE. White & Case LLP is serving as legal advisor to VPCB.

Management Presentation

An on-demand investor webcast hosted by the management teams of Kredivo and VPC Impact Acquisition Holdings II discussing the proposed business combination can be accessed by visiting https://event.on24.com/wcc/r/3340632/D0DC8D65B9B831777DDD8040D056A57D .

For materials and information, visit https://finaccel.co/2021/08/kredivo-go-public-with-vpcii/ for Kredivo and https://www.victoryparkcapital.com/vih/vpc-impact-acquisition-holdings-ii/ for VPCB. VPCB will also file the presentation with the SEC as an exhibit to a Current Report on Form 8-K, which can be viewed on the SEC’s website at www.sec.gov .

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The round also drew in Kredivo Holdings’ existing investors such as Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners, and Openspace Ventures. The first tranche of this series D, which amounted to USD 140 million, was secured by Kredivo in 2022.

With this new funding, Kredivo aims to accelerate its fintech offerings, which include personal loans, physical and virtual credit cards, and buy now, pay later. It also looks to support the upcoming launch of its neobank Krom.

Kredivo’s post-money valuation is currently pegged at around USD 1.6 billion, according to VentureCap Insights. The firm reported having an approved user base equivalent to the number of credit card holders in Indonesia, with plans to exceed this figure in the next year or two. Kredivo also operates in Vietnam, where it has a joint venture with Phoenix Holdings.

Previously known as FinAccel, the fintech major had planned to go public via a SPAC deal in 2023 but scrapped it due to unfavourable market conditions. Meanwhile, Mizuho Bank has continued deepening its Southeast Asian fintech investment. In December 2021, it led the USD 200 million series E funding of Vietnam’s MoMo.

Kredivo had previously partnered with Vietnam-based Phoenix Holding to launch instalment programmes in Asia-Pacific in August 2021. The Vietnamese entity, Kredivo Vietnam Joint Stock Company, is used to leverage Kredivo's extensive PayLater expertise as well as Phoenix Holding's local network and know-how.

Kredivo in Indonesia

In December 2021 the company expanded its reach in the retail sector by offering the Buy Now, Pay Later solution for IKEA’s customers in Indonesia . This partnership allows customers to shop for IKEA products using Kredivo as a payment method on the IKEA Indonesia website as well as offline stores and choose to pay in 30 days or 3 months with 0% interest, or take 6 and 12 month instalments with only 2.6% interest per month.

A month earlier, the UK-based payments infrastructure provider PPRO announced the integration of Indonesian Buy Now, Pay Later solutions through Kredivo . The integration allows merchants to offer customers the option to pay with Kredivo, accessing more of the world’s ecommerce market as clients can choose to pay in equal monthly instalments for electronics and other goods.

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Southeast Asian credit fintech Kredivo scores $270M Series D

The funding landscape in Southeast Asia is still wintery, but one fintech managed to land a major round. Kredivo Holdings , which offers credit services to underbanked consumers in Indonesia and Vietnam, has raised $270 million in what it says was an oversubscribed Series D.

The round was led by Japanese bank Mizuho Bank, a subsidiary of Mizuho Financial Group that contributed $125 million. It included participation from returning investors like Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners and Openspace Ventures.

The company has now raised a total of about $400 million in equity, and has committed debt facilities of almost $1 billion to grow its loan book.

Kredivo CEO Akshay Garg declined to disclose Kredivo’s current valuation, but told TechCrunch that it has increased by 4x to 5x “in every valuation round historically.” He added that Kredivo now drives 3% to 4% of total GMV for its top e-commerce merchants in Indonesia, compared to 15% to 20% from credit cards.

The company nearly went public last year in a $2.5 billion SPAC deal, but nixed it, citing adverse market conditions. Garg said there are no plans to revive the SPAC and that Kredivo is “happy to stay private for the time being” and will evaluate public listing options later.

When asked how many active users Kredivo has, Garg said its approved user base is “now in the same range as the credit card population of Indonesia and we intend to exceed it over the next year or two.” According to the Bank of Indonesia, there are about 15 million to 16 million credit cards in circulation, but Kredivo’s surveys found most credit card holders have two, so the number of unique card holders is about half that number.

Kredivo’s founding team. Image Credtis: Kredivo

Formerly known as FinAccel, Kredivo is the parent company of Kredivo and Krom Bank Indonesia, its new neobank. The company’s products include online and offline buy now, pay later, personal loans, credit cards and banking services through Krom.

“Neobanking is very synergistic with our existing Kredivo business, and offers a very large business opportunity in its own right, given the scale of unbanked and underbanked users in Indonesia,” said Garg. Krom’s services will launch with deposits and transaction banking this year, pending final regulatory approvals.

Kredivo is also building an open loop credit card-like product, which includes Infinite Card, a virtual card partnership with Mastercard and offline card Flexicard, through direct partnerships with online and offline merchants.

Kredivo’s target demographic is underbanked consumers, or people who have access to bank accounts but little credit access because of poor credit bureau infrastructure and the reluctance of traditional banks to offer unsecured credit. Since Kredivo doesn’t rely solely on traditional credit bureaus, it gauges the creditworthiness of potential consumers through data sources like telcos, e-commerce accounts and bank accounts.

Another way Kredivo mitigates risk (and lowers the cost of its credit) is by targeting urban, white collar, employed customers, usually with bank accounts, compared to competitors that target higher-risk consumers and charge correspondingly higher interest rates.

Kredivo’s direct and indirect competitors include Akulaku ’s BNPL and Bank Neo Commerce (the fintech also recently raised significant funding from a large Japanese bank ), Advance.ai’s Atome BNPL service and Kredit Pintar cash loans and Sea Group’s Sea Money.

In a statement about the investment, Daisuke Horiuchi, Mizuho group executive officer deputy head of retail and business banking company, said, “Kredivo has a stellar track record in Southeast Asia, leveraging on its deep data partnerships to promote financial inclusion within Indonesia and Southeast Asia, while maintaining bank-like risk metrics and building a capital efficient business model.”

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Mizuho leads BNPL giant Kredivo’s $270m round

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Kredivo Holdings , the Singapore-based parent company of Kredivo and Krom Bank Indonesia, has raised US$270 million in a series D round led by Japan’s Mizuho Bank.

The round also drew in Kredivo Holdings’ existing investors such as Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners, and Openspace Ventures.

The first tranche of this series D, which amounted to US$140 million, was secured by Kredivo in 2022.

With this new funding, Kredivo aims to accelerate its fintech offerings, which include personal loans, physical and virtual credit cards, and buy now, pay later. It also looks to support the upcoming launch of its neobank Krom.

Kredivo’s post-money valuation is currently pegged at around US$1.6 billion, according to VentureCap Insights.

The firm reported having an approved user base equivalent to the number of credit card holders in Indonesia, with plans to exceed this figure in the next year or two.

Kredivo also operates in Vietnam, where it has a joint venture with Phoenix Holdings.

Previously known as FinAccel, the fintech major had planned to go public via a SPAC deal last year but scrapped it due to unfavorable market conditions.

Meanwhile, Mizuho Bank has continued deepening its Southeast Asian fintech investment. In December 2021, it led the US$200 million series E funding of Vietnam’s MoMo.

For past Tech in Asia coverage of Kredivo, head here .

FinAccel (Kredivo)

FinAccel (Kredivo) is a financial technology company creating disruptive and meaningful products in retail credit for Southeast Asia.

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Kredivo funding & investors

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Summary of Funding Rounds of Kredivo

Kredivo funding, how much funding did kredivo raise in its latest funding round, how much funding has kredivo raised till date, list of all funding rounds of kredivo.

Kredivo Investors

Who are the lead investors in kredivo's latest funding round, how many investors does kredivo have.

• Kredivo has total 24 investor s .
• 24 are institutional investors including Square Peg Ventures and 23 other s .

List of Kredivo's institutional investors

• Mizuho Financial Group , made their first investment in Kredivo on Mar 23, 2023 in its Series D round .
• Square Peg Ventures , made their first investment in Kredivo on Jul 26, 2018 in its Series B round .
• Victory Park Capital Advisors , made their first investment in Kredivo on Jul 01, 2020 in its Conventional Debt round .
• Mirae Asset , made their first investment in Kredivo on Dec 02, 2019 in its Series C round .
• Partners For Growth , made their first investment in Kredivo on Sep 04, 2019 in its Venture Debt round .

Frequently asked questions about Kredivo 's funding and investors

How many funding rounds does kredivo have.

• 3 Debt round s
• 3 Early-Stage round s
• 2 Late-Stage round s

Which was the largest funding round of Kredivo ?

What is the valuation of kredivo , explore latest companies that raised funding recently.

• Tsubame BHB - Tokyo based, raised a funding of $35.3M in Series C round held on 22 Feb, 2024.
• Climate Impact X - Singapore based, raised a funding of $22.3M in Series B round held on 22 Feb, 2024.
• Prefer - Singapore based, raised a funding of $2M in Seed round held on 22 Feb, 2024.
• Ghost Kitchens - Mumbai based, raised a funding of $5M in Series B round held on 22 Feb, 2024.
• fabrichealth.com - raised a funding of $60M in Series A round held on 22 Feb, 2024.

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Singapore's Kredivo raises $270M in Series D equity round led by Mizuho Bank

Kredivo Holdings (formerly known as FinAccel), the parent company of Kredivo and Krom Bank Indonesia, has on Thursday announced that it has raised $270 million in equity financing in a significantly oversubscribed round, bringing its Series D fundraise to a successful close.

This round was led by Japanese global bank Mizuho Bank, Ltd., a subsidiary of Mizuho Financial Group, Inc. (Mizuho), Kredivo said in a statement.

According to the statement, the round also drew significant interest from Kredivo Holdings’ existing stable of top tier investors, including Square Peg Capital, Jungle Ventures, Naver Financial Corporation, GMO Venture Partners and Openspace Ventures, among others.

This fundraise will cement Kredivo’s leading position in the digital financial services industry through its powerful expanding ecosystem which includes online and offline Buy Now, Pay Later (BNPL), personal loans, credit cards (physical and virtual) and support the upcoming launch of the neobank Krom.

Kredivo is already a market leader in the third party BNPL segment in Indonesia, covering all major ecommerce and offline channels in the country via its open loop network.

“Despite challenging market conditions, investors continue to recognize the scale and strength of our business, and our innovation potential,” said Akshay Garg, Chief Executive Officer of Kredivo Holdings.

According to him, the upcoming expansion into digital banking is deeply synergistic with the existing Kredivo product and also opens up a very promising channel for the firm to become the digital financial services platform of choice for tens of millions of consumers in Southeast Asia.

“Finally, we are delighted to have Mizuho join us as a valuable investor and strategic partner,” he added.

Daisuke Horiuchi, Group Executive Officer Deputy Head of Retail & Business Banking Company of Mizuho, said the firm is very proud to be an investor and long term strategic partner of Kredivo Holdings.

“Kredivo has a stellar track record in Southeast Asia, leveraging on its deep data partnerships to promote financial inclusion within Indonesia and Southeast Asia, while maintaining bank-like risk metrics and building a capital efficient business model,

“The digitization of financial services is a multi-decadal theme, and we’re excited to back Kredivo’s mission of building the highest quality digital financial services platform in Southeast Asia,” he added.

Evercore acted as the financial advisor to Kredivo Holdings for Mizuho’s investment in the Series D equity transaction, and Cooley LLP acted as the legal advisor.

Kredivo Holdings is Southeast Asia’s leading provider of digital financial services through its brands Kredivo, KrediFazz and Krom.

The firm is the leading digital credit platform in Indonesia and Vietnam that gives customers instant credit financing for ecommerce and offline purchases, and personal loans, based on real-time decisioning.

Kredivo users can buy now and pay later across the entirety of Indonesia’s retail commerce network with one of the lowest interest rates amongst digital credit providers in the country.

Krom Bank Indonesia (formerly known as Bank Bisnis Internasional) is the group’s bank entity and the operator of the soon-to-be-launched Indonesian neobank Krom.

Kredivo Holdings is backed by leading financial and strategic investors such as Mizuho Financial Group, Square Peg Capital, Jungle Ventures, Naver Corp, Mirae Asset and Victory Park Capital among others.

Mizuho Financial Group is a leading global financial institution with one of the largest customer bases in Japan, offering comprehensive financial and strategic services including retail banking, corporate finance, investment banking, asset management, capital markets, and sales and trading, through its subsidiaries.

Mizuho has over $2 trillion of assets and over 870 offices across the world.

Established over 140 years ago, Mizuho’s vision is to become the most trusted financial services group with a global presence and a broad customer base, contributing to the prosperity of the world, Asia, and Japan.

Singapore FinTech firm Pilon secures $5.2M seed funding led by Wavemaker Partners

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