FinAccel, the parent company of Kredivo, and VPC Impact Acquisition Holdings II today terminated their proposed merger. The parties cited unfavorable market conditions.
Concurrent with the agreement to terminate, VPC is leading a $145 million private structured investment in Kredivo. Kredivo plans to consider offers to participate in a private investment round from investors who held positions in VPCB, as well as other investors that had previously committed to the PIPE supporting the deal. 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.
Gordon Watson, Co-CEO of VPCB and partner at VPC, said, “We operate with the best interest of shareholders as our top priority. Unfortunately, unfavorable public market conditions and process delays outside of our and Kredivo’s control have affected our transaction timeline and made it infeasible to close the transaction under the terms of the business combination agreement. Notwithstanding, we continue to believe in the immense market opportunity for digital consumer credit and banking services in Southeast Asia, and our continued investment in Kredivo reflects our view that the company is well positioned to deliver innovative products and capture market share over the long-term. We look forward to continuing our partnership with Akshay and the rest of Kredivo’s management team.”
Kredivo provides customers in Southeast Asia instant credit financing for e-commerce and offline purchases, as well as personal loans.
Announced last August, the deal was expected to put over $430 million of cash on the combined company’s balance sheet, including the $256 million of cash held in the SPAC’s trust account, a $120 million PIPE led by Marshall Wace, Corbin Capital, SV Investment, Palantir Technologies, Maso Capital, and sponsor VPC, and a concurrent equity commitment of $55 million from existing FinAccel investors NAVER and Square Peg. Read more.
