The Daily Dish (8/03/21)
FinAccel, the owner of Indonesian Buy New, Pay Later platform Kredivo is planing to go public through a $2.5 Billion SPAC Merger with Victory Park Capital.
The agreement will ensure gross proceeds of $430 million for the company including a PIPE investment for $120 million.
Kredivo provides customers with instant credit financing for e-commerce & offline purchases and issues personal loans based on its proprietary technology.
The company has four million customers in Indonesia and is planning to use the funds from the SPAC merger to expand to new markets such as Vietnam and Thailand.
Kredivo is looking to capture a market that has traditionally been ignored by banks with the intention of providing fast, affordable and easy access to credit.
Over 66% of Southeast Asia’s population is unbanked or underbanked, ensuring that the platform has a large addressable market seeking credit.
Most investors in the SPAC merger of Israel based insure tech company Hippo have asked for the their money back.
Over 83% of the capital raised by Reinvent Technology Partners was withdrawn, with $192 Million being returned to investors.
So when Hippo begins trading on the NYSE, the company will receive much less money than originally expected.
Under the original agreement, the company expected to receive $230 million from the SPACs funds and an additional $550 million from PIPE investors.
While the company will keep its original valuation of $5 Billion, it will only have $580 Million in proceeds.
This is a significant event in the SPAC market, which suggests that investors believe that valuations are too high and instead prefer to have options without risking their money.
Indonesia based Traveloka is in talks with investors to raise as much as $400 million as part of its SPAC Merger with Bridgetown Holdings.
The merger is set to value at the combined company at $5 Billion with the PIPE funding discussed between $200 Million and $400 Million.
Founded in 2012, the company has expanded its reach across to seven countries, making it easer for consumers to book flights and hotels across countries.
In recent years the company has sought to grow its offerings with complementary services like financial services alongside its core business.