VPC Impact Acquisition Holdings II (VPCB) Terminates Kredivo Deal

VPC Impact II (NASDAQ:VPCB) announced this morning that it has mutually terminated its combination with Southeast Asian fintech platform Kredivo.

As with other recent terminations, the parties cited “market conditions” as the cause, but this isn’t a true break up of the two sides. VPC II’s sponsor, Victory Park Capital, has pledged to lead a $145 million investment into Kredivo parallel to the termination and has invited participants in the former deal’s $120 million PIPE to join.

Interestingly, the SPAC has also decided to offer shareholders a penny warrant that would convert to 3.5% of Kredivo’s fully diluted equity should the SPAC be liquidated. For now, VPC II is considering its options and has time on its side with a termination deadline set for March 2023. But, its decision to not announce that it would be seeking a new business combination by default in its press release speaks of the current environment.

The current market pain is raining down on SPACs and IPOs alike, and the switch-up in this deal may be repeated by other SPAC sponsors who have the ability and interest in shifting their target from a SPAC merger to a private investment play.

VPC II initially announced its $2.5 billion combination with Kredivo on August 2. Jakarta-based Kredivo provides customers instant credit financing, including personal loans, based on AI-enabled real-time decisioning.