Atome Scores Funding to Roll Out New Credit Products Across SEA
Atome Financial, a leading financial technology platform in Southeast Asia, has secured a new loan facility from Singapore-headquartered EvolutionX Debt Capital. The investment, which hopes to raise an additional $100 million through a syndicate of investors, has a three-year term.
Launched in December 2019, Atome provides “buy now, pay later” (BNPL) plans through its network of more than 5,000 online and offline retailers across the fashion, beauty, lifestyle, fitness, and homeware. It currently has a presence in nine markets in the region and Greater China. Atome is part of Advance Intelligence Group, a Series-D, AI-driven technology company based in Singapore, which is backed by top-tier investors, such as SoftBank Vision Fund 2, Warburg Pincus, Northstar, and EDBI.
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Atome is stepping up efforts to expand its credit portfolio in the region through the fresh loan facility. Plans are in the works to roll out new savings, lending, and insurance products, as well as Atome Card, a pay later anywhere card. These are targeted to be launched in Singapore, Malaysia, Indonesia, and the Philippines. On top of these, the BNPL brand is working to increase its connections with platforms like TikTok Shop and Lazada to reach more customers across Southeast Asia.
“The launch of innovative and fit-for-market solutions like the Atome Card and lending products demonstrates [Atome's] ability to expand offerings while leveraging local market expertise,” Rahul Shah, partner at EvolutionX, said. “This is our first fintech investment in Southeast Asia, and we’re excited to support Atome in their ongoing journey to improve financial inclusion and access to mobile-first financial services in large underserved markets.”
In 2023, Atome’s operating income almost doubled to $170 million, mainly driven by the profitability of its BNPL service. Its performance was regarded as “impressive” despite capital market contractions and macroeconomic headwinds. So far, the company says it is able to maintain the positive momentum as of the first quarter of 2024.
“With Atome having reached profitability earlier this year, we’re excited to partner [with] EvolutionX for our next stage of growth. This new facility [recognizes] Atome’s operational excellence and platform value as we look to accelerate the momentum of our digital financial services business,” Jefferson Chen, co-founder and CEO of Advance Intelligence Group, said.
EvolutionX Debt Capital is a growth-stage debt financing platform jointly set up by Singapore’s DBS Foundation and Temasek Trust. It invests in technology-enabled companies in Asia, specifically focusing on China, India, and countries in the southeast part of the region. Among the sectors the company supports are consumer, education, financial services, healthcare, logistics, and industrial development.
