Indonesian fintech firm Kredivo said to be weighing a US listing via SPAC route

Indonesian fintech firm Kredivo is said to be weighing various options including a public listing in the US via a Special Purpose Acquisition Company (SPAC).

Two sources close to Kredivo told DealStreetAsia that the firm has been in talks with US private capital manager Victory Park Capital, which has four blank cheque companies — ranging from $200-225 million in size — to its name.

The Indonesian lender is no stranger to Victory Park Capital, having raised a $100 million debt facility from the firm last November. It was also Victory Park’s first deal in Southeast Asia. According to the sources quoted above, Kredivo is said to command a pre-money valuation of $1 billion — a figure it had supposedly reached during its last private fundraising in 2020.

Kredivo, however, is understood to be weighing all options and may choose not to proceed with the SPAC route. One source close to Kredivo disclosed that 75% of its last fundraising proceeds still remain unspent. As such, it is in no hurry to raise new funds. The current slump in SPAC prices and frozen private placement (PIPE) market may also dissuade the firm from opting for the SPAC route.

Meanwhile, multiple sources have also offered different views on Kredivo’s true valuation — starting from below $1 billion all the way to a post-money valuation of over $3 billion, after factoring in the lending firm’s breakneck growth and forward-looking projections.

Founded in 2016, Kredivo operates under the fintech company FinAccel, and provides customers in Indonesia instant credit financing for e-commerce and offline purchases and personal loans. Its users can ‘buy now and pay later’ (BNPL) at low-interest rates, while its merchant partners benefit from instant point-of-sale financing.

It competes directly with Sequoia-backed digital credit lender Akulaku, and peer-to-peer lenders like UangTeman, as well as online marketplaces and payment startups like Tokopedia, Traveloka, and OVO which have also developed their own BNPL features.

Kredivo raised one of the largest funding rounds by a non-unicorn company in the region when it bagged $90 million in a Series C round in December 2019 co-led by South Korea’s Mirae Asset-Naver Asia Growth Fund and the Australian venture capital firm Square Peg. The round reportedly pegged Kredivo’s valuation at almost $500 million.

Other investors on Kredivo’s cap table include Singtel Innov8, Telkomsel Indonesia, MDI Ventures, Cathay Innovation, DST Partners and Kejora Intervest.

Victory Park Capital said that it does not comment on rumours or speculation. Kredivo declined to comment on this story.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.