Cooley announced it had advised FinAccel, the parent of buy-now-pay-later platform Kredivo in Indonesia, on its agreement to merge with VPC Impact Acquisition Holdings II (VPCB), a special purpose acquisition company (SPAC) sponsored by Victory Park Capital, which will result in Kredivo becoming a publicly traded company on the Nasdaq.
Cooley partners Ferish Patel, Matthew Bartus, Rama Padmanabhan and Will Cai led the team advising FinAccel on the transaction, which the firm said marked the largest fintech de-SPAC transaction in Asia.
Upon completion of the transaction, which is expected to close in the first quarter of 2022, the combined company’s expected pro forma equity value will be about USD2.5 billion.
“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,” said Akshay Garg, co-founder and chief executive officer of FinAccel.
The deal will result in more than USD430 million in cash on the combined company’s balance sheet, reflecting a contribution of up to USD256 million in cash held in VPCB’s trust account, and USD120 million in a private investment in public equity (PIPE) from investors, with a concurrent equity commitment of USD55 million from existing FinAccel investors Naver and Square Peg.
Founded in 2016, Kredivo plans to expand into regional markets such as Vietnam and Thailand in the near future.