Information on the Target

Pace is a rapidly expanding fintech company based in Singapore, specializing in 'Buy Now Pay Later' (BNPL) solutions. Founded in 2021 by Turochas 'T' Fuad, Pace has quickly established itself as a prominent player in the BNPL market across Asia, with over 3,000 points-of-sale. The company allows consumers to divide their purchase amounts into three equal, interest-free payments over a span of 60 days, thereby promoting sustainable spending.

In just one year, Pace has achieved substantial growth and is projected to reach a Gross Merchandise Value run rate of USD 1 billion by the end of 2022. The company’s strategic focus on financial inclusion aims to empower consumers with control over their expenditures, while simultaneously enabling merchants to enhance sales efficiency through innovative fintech solutions.

Industry Overview in Singapore and Asia

The financial technology industry in Asia is experiencing dynamic shifts, particularly with the rising popularity of BNPL services. As consumers increasingly seek flexible payment options to manage their budgets, the BNPL market is expected to become the fastest-growing sector within the financial services landscape. This trend is reinforced by changing consumer behaviors and preferences towards more accessible financing solutions.

In Singapore, an increasing number of consumers are turning to BNPL services as a means to streamline their purchasing processes, facilitating a more manageable way to handle expenses. The fintech ecosystem is also bolstered by supportive governmental regulations and a growing inclination towards digital financial services.

The demand for BNPL is proliferating across Asian markets, with consumers valuing the ease and convenience of these services. Countries such as Malaysia, Thailand, and Hong Kong are also witnessing the emergence of fintech solutions that cater to similar consumer needs. This rapid growth presents significant opportunities for companies like Pace to capture market share by enhancing customer experiences and integrating local payment preferences.

Investments in the BNPL sector from established investors reflect the confidence in the long-term viability of this industry. As Pace continues to penetrate more markets within Asia, it is well-positioned to capitalize on the burgeoning demand for flexible payment options in an increasingly competitive landscape.

The Rationale Behind the Deal

Pace's recent Series A funding round, which raised USD 40 million, is aimed at supporting its expansion into key markets, such as Japan and South Korea, as well as strengthening its presence in Taiwan. The backing from prominent investors reflects a strong belief in the company’s vision and operational capabilities. Participation from local investors enhances Pace's market penetration and adaptability in the regional landscape.

The funding will primarily be allocated towards scaling technology, enhancing operational capabilities, and driving business development, ultimately striving to increase its user base and reach a Gross Merchandise Value run rate of USD 1 billion. The infusion of capital will provide Pace with the necessary resources to accelerate growth, drive customer engagement, and foster financial inclusion across markets.

Information About the Investor

The investment round included key players such as UOB Venture Management from Singapore, Marubeni Ventures from Japan, Atinum Partners from South Korea, AppWorks from Taiwan, as well as several family offices from Japan and Indonesia. These investors bring substantial industry expertise and a broad network, allowing Pace to leverage their insights and relationships to strengthen market position.

UOB Venture Management's Executive Director, Paul Ng, highlighted the confidence that leading industry figures have in Pace's leadership and vision. As more financial institutions acknowledge the shifting landscape towards digital financial services, these investments play a crucial role in supporting companies that are innovating within this space.

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From an investment perspective, Pace presents a compelling opportunity within the burgeoning BNPL sector in Asia. The increasing consumer appetite for flexible payment options, combined with Pace's early success and growth trajectory, indicates a strong market positioning that could yield significant returns. Investors can find confidence in the company's ability to adapt its offerings to meet local consumer demands while maintaining a level of operational agility that is essential in such a rapidly evolving sector.

The backing from established investors amplifies the perceived credibility of Pace and its leadership team, enhancing its reputation in a competitive marketplace. The tailored approach that Pace employs, incorporating local payment preferences, positions it favorably to capture a diverse customer base across different regions.

Furthermore, the emphasis on financial inclusion aligns well with global trends towards democratizing access to financial services, potentially expanding Pace's user base and driving significant sales growth. Given the trends in the BNPL sector and the anticipated growth in regional markets, this investment appears to be a strategic move for both Pace and its investors.

In conclusion, with the combination of robust growth potential, strong investor backing, and a commitment to financial inclusivity, Pace stands out as a promising investment opportunity, especially for those looking to capitalize on the future of fintech in Asia.

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