Atome Financial Secures $200 Million Syndicated Credit Facility to Accelerate SEA Expansion
Atome Financial has secured a syndicated credit facility of up to U.S. $200 million. It is led and arranged by Hongkong and Shanghai Banking Corporation Limited (HSBC) through its ASEAN Growth Fund, and is also supported by DBS Bank Ltd, Sumitomo Mitsui Banking Corporation (SMBC) Singapore branch, and Brunei’s Baiduri Bank. This allows the financial technology platform to accelerate its portfolio in the region, as well as expand the reach of its Atome "buy now, pay later" (BNPL) Card.
"As a fast-growing startup with a rapidly growing and profitable business, we are deeply appreciative of this syndicated facility, which underscores the banking community’s trust and confidence in us," said Andy Tan, Chief Commercial Officer at Atome Financial. "We look forward to HSBC, and our other partners, continuing to support our capital needs and launch of new and innovative personal finance products in key markets like Singapore, Malaysia and the Philippines."
"We are pleased to deepen our support to lead this syndicated facility, along with other lenders. Through this support, Atome Financial will bring about greater financial inclusion by extending access to affordable and responsible personal finance solutions to more consumers from across Southeast Asia," said Priya Kini, Head of Commercial Banking, HSBC Singapore.
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Atome Financial and Its BNPL Product
Atome Financial is part of Advance Intelligence Group (Advance Intelligence Pte Ltd), an AI-driven technology startup founded in 2016 in Singapore. Founded in 2107, Atome Financial has become one of the leading fintech companies in Southeast Asia as it evolves from traditional banking by promoting financial inclusivity. Other business units of the Advance Intelligence Group are Kredit Pintar, a digital lending platform in Indonesia, and ND Finance, a micro-lending brand in China.
But what's probably Atome Financial's most popular product, at least to the Philippine market, is the Atome BNPL service. Pronounced "A-To-Me" (short for "Available to Me"), it was launched in December 2019 and has since become a GenZ-approved brand after it was introduced to the country in late 2021. Its selling point, aside from convenience through online application with no minimum income required, is that both its physical and virtual cards allow for flexible installment plans with zero interest. The account can be used anywhere (online, in-store, or overseas), as long as Mastercard is accepted. The spending limit can also be regularly increased, whether through an application or by automatic addition to your account.
Atome Financial's operating income nearly doubled to US$170 million in FY2023, while its BNPL business model earned a 130% surge in revenue. It turned EBITDA positive in the first quarter of 2024.
News of this U.S.$200 million syndicated facility comes after the U.S.$100 million debt facility agreement entered with HSBC Singapore in August 2022, then renewed in August 2023. Atome Financial also secured a three-year term loan facility in June 2024 with EvolutionX Debt Capital to launch new products in the Philippines, Singapore, Malaysia, and Indonesia.
