Asia-focused technology venture capital firm Fatfish Group (ASX: FFG) has raised $8 million to grow its buy now pay later (BNPL) and fintech businesses in South East Asia.
The fresh funding comes from US-based Arena Investors – a $2.2 billion institutional asset management company founded in partnership with The Westaim Corporation.
In 2018, Fatfish locked in a strategic and long-term commitment from Arena for up to $10 million in growth capital, issued in convertible notes which could be used for new Fatfish shares.
That deal aimed to provide the group with funding through to 2021, using it to expand its existing investee companies and access new merger and acquisition opportunities.
This newest raising has been secured by a definitive deed of amendment to the original transaction and will be achieved convertible notes issued in a single tranche at a fixed price of $0.07 per share, representing an 18% premium to the prior day’s closing price.
The notes have a mutually-extendable tenure of 12 months and will carry a coupon rate of 1% per year convertible into ordinary shares of Fatfish at a fixed conversion price of $0.07 per share at the request of Arena investors.
The funds will be used to develop and market Fatfish’s suite of next-generation BNPL and digital lending services, such as the flagship Payslowslow retail brand, and help grow its fintech businesses.
These include Singapore online lending platform Smartfunding Pte Ltd; digital insurtech Fatberry.com; Malaysian money lender Foreverpay Sdn Bhd; and gateway payment service provider Pay Direct Sdn Bhd.
Fatfish chief executive officer Kin W Lau said the new funding agreement was an extension of a strong partnership with Arena.
“Arena has been an incredibly supportive investor, working with [Fatfish] management to grow our business [and] providing funding at key inflection points of our [development],” he said.
“The company is a long-term strategic investor that we value and we are pleased to work alongside Arena again to drive [Fatfish’s] growth to the next level”.