Hot on the heels of announcing plans to launch a new buy now, pay later (BNPL) solution for corporates in November, Fatfish Group (ASX: FFG) has declared that the deal to make the launch a reality has been completed.
Currently, Fatfish operates as a technology venture firm with investments across Asia and Northern Europe. According to the company, it partners with entrepreneurs to build tech businesses via a co-entrepreneurship model and focuses on emerging global technology trends.
Fatfish has been actively investing across various sectors including rapidly growing niche markets such as video games, eSports, fintech and consumer internet technologies.
One of its most highly anticipated ventures is the move into the BNPL market.
The technology firm said it entered into a definitive agreement with the exiting shareholder of Smartfunding and fulfilled regulatory requirements to acquire a 19.9% stake in the company. The stake is in addition to a further 58.8% Fatfish owns via its Swedish subsidiary Abelco Investment Group.
Combined, Fatfish now holds 78.7% of Smartfunding and plans to leverage the shareholding to provide lending services for corporates across Asia.
Settling in Singapore
At the end of November this year, Fatfish announced its intention to establish a BNPL business in South East Asia via Smartfunding. The company said its overarching strategy was to conduct an initial launch in Singapore before advancing further in the region.
Provisional plans include enabling corporations to make online loan applications ranging between S$25,000 (A$25,000) and S$1 million (A$1 million), intended for the procurement of equipment or services. Written loans are then to be repaid in instalments over a 12 or 24-month period at “competitive” interest rates.
Smartfunding is a Singapore-based company, licenced by the central bank of Singapore and holds a capital market services licence granting the company regulatory abilities to conduct transactions in any investment instruments classified as securities under the Singapore Securities and Futures Act, including debt securities.
The company’s strong regulatory position and a local market licence are expected to allow Fatfish to start regulated lending services in Singapore with expansion into other territories likely to occur thereafter.
“With the completion of this direct acquisition, the FFG’s venture building team has started working closely with the Smartfunding management to prepare for the roll-out its BNPL financing service in Singapore, that will soon be launched,” Fatfish said.