- Fatfish Group (FFG) will launch a buy now, pay later (BNPL) business for corporates via its investee company Smartfunding
- The Singapore Central Bank granted Smartfunding a Capital Market Services Licence, allowing it to lend businesses up to S$1 million (around A$1.04 million), to be repaid in 12 to 24 months
- The investment vehicle launching this BNPL service is currently 58.8 per cent owned by Fatfish’s Swedish subsidiary Abelco
- Fatfish is planning to extend that stake by directly acquiring an additional 19.9 per cent interest in Smartfunding
- Shares in FFG have spiked over 15 per cent following the BNPL announcement, with the stock currently trading at 5.3 cents each
Fatfish Group (FFG) has announced it will launch a buy now, pay later (BNPL) business for corporates via its investee company Smartfunding.
The BNPL offering will target businesses across Singapore and South East Asia, allowing them to buy up to S$1 million (around A$1.04 million) in equipment.
Companies which use the service will then have between 12 and 24 months to pay back the money borrowed.
The Singapore Central Bank recently granted Smartfunding a Capital Market Services Licence, allowing it to offer a range of debt facilities.
The investment vehicle already operates a peer-to-peer online lending
platform that offers working capital loans to small and medium businesses.
The expansion into BNPL by Smartfunding has been described by Fatfish as "a natural progression" for the business.
In the meantime, the investment vehicle is currently 58.8 per cent owned by Fatfish’s Swedish subsidiary Abelco.
FFG is planning to increase its stake in Smartfunding by directly acquiring an additional 19.9 per cent stake in the company.
It'll pay S$519,000 (roughly A$544,950) for the extra stake, with the consideration to be handed over via the issue of around 11.6 million FFG shares, priced at 4.7 cents each.
Additionally, the remaining shareholder in the investment business has told Fatfish it has the option to acquire its 10.1 per cent stake in Smartfunding for $250,000.
FFG hasn't advised investors whether it will buy the additional stake, but said if it does proceed it will seek shareholder approval.
Following today's BNPL announcement, shares in Fatfish Group have jumped up 15.2 per cent at 5.3 cents each at 10:59 am AEDT.