Exhibit 99.1
Kredivo, the Leading Digital Consumer Credit Platform in Southeast Asia, and
VPC Impact Acquisition Holdings II Mutually Agree to Terminate Business Combination Agreement
SINGAPORE, JAKARTA, Indonesia & CHICAGO—March 14, 2022 – FinAccel, the parent company of Kredivo, the leading AI-enabled digital consumer credit platform in Southeast Asia, and VPC Impact Acquisition Holdings II, a publicly traded special purpose acquisition company (NASDAQ: VPCB) (“VPCB”) sponsored by Victory Park Capital (“VPC”), today announced the mutual termination of their previously announced business combination agreement.
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 such private investment round from investors who held positions in VPCB, as well as other investors that had previously committed to the PIPE. 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.”
Akshay Garg, Co-Founder and CEO of FinAccel, said: “While unfavorable market conditions have put a pause to our plans to go public in the near-term via the proposed business combination with VPCB, we’re pleased to deepen our relationship with VPC and other high-quality investors through a new private funding round. We appreciate the support of our investors as we continue on the path to realizing our long-term vision and growth strategy to become a leading digital financial services platform in Southeast Asia.”
VPCB is considering future options, including seeking an alternative business combination. The parties have agreed that, in the event that VPCB is liquidated, Kredivo shall issue a penny warrant to VPCB providing VPCB with the ability to acquire a stake equal to 3.5% of the fully diluted equity securities of Kredivo.
For investor inquiries regarding the private investment round, please contact ir@finaccel.co.
Forward-Looking Statements
This document includes “forward-looking statements” within the meaning of the federal securities laws with respect to the matters discussed herein. All statements other than statements of historical fact contained in this document, including, but not limited to, statements as to future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of Kredivo, market size and growth opportunities, competitive position, technological and market trends and the potential benefits and expectations related to the terms and timing of the proposed transactions, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” or other similar expressions. All forward-looking statements are based upon estimates and reflect the views, assumptions, expectations, and opinions of VPCB and Kredivo, which are all subject change due to various factors including, without limitation, changes in general economic conditions as a result of COVID-19. Any such estimates, assumptions, expectations, forecasts, views or opinions, whether or not identified in this document, should be regarded as indicative, preliminary and for illustrative purposes only and should not be relied upon as being necessarily indicative of future results.
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