Atome Financial secures US$100 debt facility from  EvolutionX to drive profitable expansion in Southeast Asia

• Doubled FY2023 operating income to nearly US$170 million
• The new facility will drive Atome’s portfolio expansion and product launches

Atome Financial, part of the Advance Intelligence Group, has secured a three-year term loan facility from EvolutionX Debt Capital (EvolutionX) and 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 US$100 million (RM470.8 million).

In a statement, the leading digital financial technology platform said the new facility will drive the 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 digital lending platform, posted remarkable business performance for FY2023, with operating income nearly doubling to US$170 million (RM801 million) from the year before. A key success factor was the profitability of its BNPL business, driven by a 40% year-on-year surge in GMV to US$1.5 billion (RM7 billion) and 130% y-o-y growth in revenue, despite FY2023 being a period of capital market contraction and macroeconomic headwinds. 

The firm said this 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.

Rahul Shah, partner at EvolutionX, 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 (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.

Jefferson Chen, Group co-founder and CEO of Advance Intelligence Group, said: “With Atome Financial having reached profitability earlier this year, we’re pleased to partner EvolutionX for our next stage of growth. This new facility recognises 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.”