Venture capital firm Fatfish Group (ASX: FFG) is set to launch a new Buy-Now-Pay-Later platform which will enable companies to make purchases up to $1 million but unlike the current market offerings, purchases will be funded by crowdsourcing from their Smartfunding brand.
The unique platform is facilitated by Fatfish holding the necessary Capital Market Services license in Singapore granted by their central bank, the Monetary Authority of Singapore.
Through the platform, SmartFunding will act as an intermediary facilitating the purchase loans through the design and launch of debt instruments classified as securities under the Singapore Securities and Futures Act. The securities are then held by third-party investors on the platform similar to how peer-to-peer lending operates.
The platform will be launched by Smartfunding Pte. Ltd, which is 58.8% owned by Fatfish Group’s Swedish subsidiary Abelco Investment Group. Fatfish will acquire a further 19.9% in Smartfunding whilst providing technical assistance and marketing support.
Under the model, none of Fatfish, Abelco or Smartfunding will hold any liabilities in regard to debtor default of the BNPL loan with Smartfunding acting solely as a licensed platform operator.
Once a business applies for a loan amount between $25,000 and $1,000,000, investors are invited to participate in the alternative investment instruments where loans are repaid as installments over a 12 month or 24 month period at competitive interest rates.
With their operations primarily located in Singapore and Europe’s Nordic nations, Fatfish group has been actively involved in fintech-focused startup ventures where Smartfunding will leverage their existing expertise in peer-to-peer lending. Projects like these have been further promoted by the Singapore Government which has long aimed to establish Singapore as the fintech hub of Southeast Asia.
Fatfish’s new 19.9% stake in Smartfunding will be acquired from an existing non-related shareholder of Smartfunding, at a total purchase consideration of S$519,000 (A$544,950) via script.