Buy-now-pay-later fintech Atome gets $75-M fresh funding
Atome logo
MANILA, Philippines — Financial technology player Atome obtained $75 million in fresh funding to provide more credit products to Filipino borrowers.
In a statement on Monday, the buy now, pay later (BNPL) platform announced that Hong Kong-based investment firm Lending Ark had extended an asset-backed financing facility to finance its expansion plans.
“This financing reflects the continued confidence in Atome’s ability to deliver inclusive, risk-managed credit at scale,” Atome chief commercial officer Andy Tan said.
The BNPL service provider offers cash loans of up to P50,000 to eligible users for interest rates starting at 1.75 percent. It allows repayment plans of up to 12 months.
“We’re excited to support Atome in the Philippines, a high-growth market with increasing demand for accessible, affordable credit and mobile-first financial solutions,” Lending Ark managing director Carol Lee Park.
Lending Ark, engaged in asset-backed credit investments, has invested $1 billion across the region, including the Philippines Hong Kong, South Korea, Australia/New Zealand, Indonesia and Vietnam.
READ: BNPL services take root in Philippines
Prior funding rounds
In February, Atome obtained an $80-million private credit fund managed by BlackRock and InnoVen Capital, which is seen to support the growth of the company for the year.
READ: Atome Financial, BlackRock, InnoVen Capital join loan facility
Prior to this, Atome also secured a credit facility of up to $200 million in November last year. The transaction was arranged by Hongkong and Shanghai Banking Corp. Ltd.
The fintech player grew its revenue by 45 percent to $280 million last year while gross merchandise value increased by 35 percent to $2.5 billion.
The BNPL option is a growing segment in the online lending space. It allows consumers to pay for their online purchases through a loan, which will be paid back in fixed installments.
According to a study by TransUnion in December last year, Filipino Gen Zs prefer a BNPL option because “it was easy to apply.” The young respondents also use this because it allows them to spread the payments over time, making it affordable.
