Atome secures debt facility to launch new products in PHL, Southeast Asia
ATOME FINANCIAL has secured a three-year term loan facility to launch new products in the Philippines, Singapore, Malaysia, and Indonesia, it said on Tuesday.
EvolutionX Debt Capital is the first lender of the new debt facility, which will be used to drive the Atome’s growth, the financial technology (fintech) firm said in a statement.
“The new facility will drive expansion of the company’s profitable regional credit portfolio and support the launch of new products such as savings, lending, insurance, and Atome Card (Pay Later Anywhere) in markets including Singapore, Malaysia, the Philippines, and Indonesia,” Atome said.
It added that it is working with investors to fully use the accordion feature of the facility, which can increase the total amount to up to $100 million.
Atome Financial, which is part of Singapore-based Advance Intelligence Group, is active in the Philippines as a buy now, pay later (BNPL) firm.
“With Atome Financial having reached profitability earlier this year, we’re excited to partner with EvolutionX for our next stage of growth. This new facility recognizes Atome Financial’s operational excellence and platform value as we look to accelerate the momentum of our digital financial services business, the expansion of regional strategic partnerships like TikTok Shop and Lazada as well as the launch of the new Atome Card, savings and lending products across key Southeast Asian markets,” Advance Intelligence Group Chief Executive Officer and Co-Founder Jefferson Chen said.
“We have been impressed by Atome Financial’s management team and support from long-term investors and partners, underpinned by strong focus on risk management and operational efficiency, which has resulted in sustainable and profitable business growth. The launch of innovative and fit-for-market solutions like the Atome Card (Pay Later Anywhere) and lending products demonstrates their ability to expand offerings while leveraging local market expertise,” EvolutionX Partner Rahul Shah said. “This is our first fintech investment in Southeast Asia, and we’re excited to support Atome Financial in their ongoing journey to improve financial inclusion and access to mobile-first financial services in large under-served markets in Southeast Asia.”
Atome Financial said its operating income nearly doubled year on year to $170 million in 2023, mainly driven its BNPL business.
“A key success factor was the profitability of its BNPL business, driven by a 40% year-on-year (y-o-y) surge in GMV (gross merchandise volume) to $1.5 billion and 130% y-o-y growth in revenue, despite 2023 being a period of capital market contraction and macroeconomic headwinds,” it said.
It added that this positive momentum in 2023 resulted in Atome Financial turning profitable in the first quarter. — AMCS