FinAccel Becomes Singapore’s Newest Unicorn After Canceling SPAC Merger, U.S. IPO Plans

Singapore-based FinAccel—the parent of Indonesia’s buy now, pay later (BNPL) platform Kredivo—has become the city-state’s newest unicorn after raising almost $140 million in a funding round months since the firm canceled a SPAC merger and IPO plans due to unfavorable market conditions.

The Series D funding round closed last week, and was led by existing investor Mirae Asset with participation from Cathay Innovation, Endeavor Catalyst, GMO Global Payment, Jungle Ventures, Open Space Ventures, and Square Peg, according to data from research firm VentureCap Insights. The deal values FinAccel at $1.66 billion, more than thrice the $451 million valuation when it last raised funding in 2019, the data showed. A representative for FinAccel declined to comment.

While the valuation from this latest funding round is less than the $2.5 billion valuation FinAccel would have gotten if it proceeded with the proposed merger with a SPAC sponsored by Chicago-based investment firm Victory Park Capital and a listing in the U.S., it is among the few transactions still happening at a time funding from venture capital firms are quickly drying up amid heightened market volatility, soaring inflation and the risk of a global recession is rising. Global investments by VC firms dropped to $74.5 billion in the third quarter, the lowest level in nine quarters, data from research firm CB Insights showed. That’s 34% lower compared to the previous three months.

The company was cofounded by Indian entrepreneur Akshay Garg in 2015 and quickly formed Kredivo the following year to tap into Indonesia’s booming consumer credit market. The pandemic turbocharged Kredivo’s growth, with the startup boasting 500,000 accounts at the end of 2018, then 1.2 million a year later and 2.2 million at end-2020, before nearly doubling last year.

In an interview with Forbes Asia in February, Garg said Kredivo aims to expand across Southeast Asia, while broadening its offerings beyond providing financing for online purchases and extending consumer credit. To that end, last year, Kredivo bought a controlling 40% of a small Indonesian bank, allowing it to offer more services that can only come from a traditional bank. “Today, you think about Kredivo for e-commerce, personal loans and very soon for offline purchases. But later, we want you to think about Kredivo for motorcycle loans, car loans and credit cards as well,” Garg said.

—with assistance by Ardian Wibisono.