Singapore-based fintech firm Atome Financial has secured up to $100 million growth debt facility from EvolutionX to drive profitable expansion in Southeast Asia.

Atome Financial said in a statement on Tuesday that the firm is concurrently working with a syndicate of investors to fully utilize the accordion feature of the facility which can increase the total amount to up to $100 million.

The three-year term loan 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 Financial, which comprises Atome Buy-Now-Pay-Later (BNPL) and Kredit Pintar, a leading Indonesian leading digital lending platform, posted impressive business performance for FY2023 with operating income nearly doubling to $170 million from the year before.

A key success factor was the profitability of its BNPL business, driven by a 40 percent year-on-year surge in gross merchandise value (GMV) to $1.5 billion and 130 percent year-on-year growth in revenue, despite FY2023 being a period of capital market contraction and macroeconomic headwinds.

The positive momentum carried into FY2024, with Atome Financial announcing in April that it had turned profitable in the first quarter of 2024.

Atome Financial is part of Singapore-headquartered Advance Intelligence Group, which is backed by top tier investors such as SoftBank Vision Fund 2, Warburg Pincus, Northstar and Singapore-based global investor EDBI.

“With Atome Financial having reached profitability earlier this year, we’re excited to partner 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,” said Jefferson Chen, Group co-founder and Chief Executive Officer of Advance Intelligence Group.

Rahul Shah, Partner at EvolutionX, said they 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 (PayLater Anywhere) and lending products demonstrates their ability to expand offerings while leveraging local market expertise,

“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,” he added.

EvolutionX is a $500 million growth-stage debt financing platform jointly set up by DBS and Temasek.

Headquartered in Singapore, the firm provides less dilutive financing to technology-enabled companies across Asia, with a focus on China, India, and Southeast Asia.

By investing into promising technology founders and entrepreneurs who are transforming large traditional industries, it aims to accelerate the digitization of Asia’s economy and further catalyze the fast-growing technology ecosystem in the region.

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