Atome Financial has secured a syndicated credit facility of up to $200 million led and arranged by HSBC, with additional support from DBS Bank, SMBC Singapore, and Baiduri Bank of Brunei, according to a statement on Wednesday.
The company plans to use this funding to expand its regional portfolio and enhance products like its lending service and the Atome Card (Pay Later Anywhere) across Southeast Asian markets. This new facility builds upon Atome’s previous arrangement with HSBC.
“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,” said Andy Tan, Chief Commercial Officer of Atome Financial.
This syndicated facility follows another recent financing milestone for Atome Financial — a $100-million term facility secured from EvolutionX Debt Capital, a growth-stage debt financing launched by Temasek and DBS; and other investors in June.
Atome Financial is a subsidiary of Singapore-based Advance Intelligence Group. The portfolios under Atome Financial are Atome, Indonesian digital lending platform Kredit Pintar; and ND Finance, a micro-lending brand in China.
Atome expands its coverage by tapping into Atome Card (PayLater Anywhere) which is currently available in the Philippines and Atome Cash loans in both the Philippines and Indonesia.
To date, Atome works with more than 15,000 retail partners across 10 markets in Asia, providing flexible payment options to consumers. It partners with global brands, such as Sephora, Zara, H&M, Nike, and Zalora.
The company’s financial performance has been strong, with operating income nearly doubling to $170 million in FY2023, mainly driven by its buy-now-pay-later (BNPL) business. Its BNPL business achieved profitability following a 130% revenue increase, processing almost $1.5 billion in gross merchandise volume during 2023. The company reached EBITDA profitability in Q1 2024.
This month, HSBC disbursed credit facilities to two startups in the region besides Atome. The first was its third credit facility for Funding Societies under the former’s $1-billion ASEAN Growth Fund. The latest transaction brought HSBC’s total commitment to the company, known as Modalku in Indonesia, to over $100 million since the two first partnered in 2022.
Second was a $100-million warehouse financing for Olea Global Pte Ltd together with alternative credit manager Manulife | CQS Investment Management, a company of Manulife Investment Management.
