The proposed SPAC transaction will create a combined company that will be named DigiAsia, with a pre-money equity valuation of $500m, and its shares will be traded on Nasdaq
DigiAsia is fintech-as-a-service (FaaS) company. (Credit: Patrick Tomasso on Unsplash)
Indonesia-based fintech-as-a-service (FaaS) company DigiAsia has signed an agreement for a business combination with StoneBridge Acquisition, a publicly traded special purpose acquisition company.
The proposed transaction will create a combined company that will be named DigiAsia and its shares will be traded on The Nasdaq Stock Market.
The combined entity is valued at a pre-money equity valuation of $500m and DigiAsia’s existing shareholders’ entire equity holding will be transferred into the combined company.
Its shareholders include Mastercard and Reliance Capital Management (RCM), a portfolio company of LeapFrog Investments.
The business combination has been approved by the board of managers of DigiAsia and the board of directors of StoneBridge Acquisition.
It is expected to close during the second quarter of 2023, subject to shareholders’ approval and other customary closing conditions.
Upon completion, the combined company will have access to $200m in net cash from the Stonebridge trust account, assuming no redemptions by Stonebridge shareholders.
Stonebridge Acquisition CEO Bhargav Marepally said: “Stonebridge was established as a bridge for IPO-ready companies in the Asia-Pacific region to access the US public markets.
“DigiAsia’s focus on Indonesia, one of the fastest growing markets in Asia, its ability to scale quickly through sticky customers, the strategic investors on the cap table and a management team with a proven track record make it a great fit for Stonebridge.”
Established in 2017, DigiAsia provides embedded fintech solutions such as mobile wallets, card issuance, bill payments, cash management, supply chain payments, and lending, among others.
The company operates with fintech licenses, to offer digital wallets, utility bill payments, banking-as-a-service (BaaS), supply chain payments, remittances and working capital loans.
Before the SPAC merger agreement, DigiAsia closed a $14.5m investment at a $450m post-money valuation, led by Reliance Capital Management (RCM).
The investment also includes a strategic partnership between RCM and DigiAsia in the areas of insurance, and asset management, among others fields.
DigiAsia co-CEO Prashant Gokarn said: “DigiAsia’s vision is to be an active part of the digital revolution of Indonesia by enabling financial services – lending, payments, remittances, and mass low-cost banking – to all individuals and businesses, irrespective of their size or socioeconomic status.
“We are also very proud to be working with Mastercard to build on our existing offering in order to increase financial inclusion in Indonesia.”