GoLogiq plans to acquire Fram Venture 7 and SME lender DragonLend
By Delisha Fernandes
GoLogiq, a US-based provider of FinTech and consumer data analytics, has announced plans to acquire Fram Venture 7 AB, a Swedish FinTech corporation, for $6 million in an all-stock transaction.
The acquisition includes Fram Venture 7’s equity interest in its wholly-owned subsidiary, DragonLend, a lending platform for small and medium-sized enterprises (SMEs) in Vietnam.
The acquisition is expected to complement GoLogiq’s existing FinTech ecosystem, which encompasses a range of financial services, from payroll services to retirement investing.
Granger Whitelaw, GoLogiq CEO, said, “The acquisition of DragonLend would further our expansion into Vietnam with a proven business lending service that is highly complementary to our fintech ecosystem. We see its scalable platform enabling us to expand into other emerging markets across Southeast Asia, such as Singapore and Thailand.”
DragonLend provides short-term (three to six months) working capital finance solutions to profitable Vietnamese SMEs. Although SMEs are critical to Vietnam’s economy, generating 40% of gross domestic product (GDP) and 50% of jobs.
The lending platform offers businesses faster, and easier access to short-term working capital for fuelling their growth. Through applying its proprietary risk model and working closely with its clients, DragonLend can issue finance solutions in days versus weeks or months, as is typical of more traditional lending institutions.
“We believe market conditions are perfect for DragonLend to rapidly scale its SME lending platform in Vietnam, especially given how the country’s small business sector has been experiencing strong economic growth,” stated Max Bergman, DragonLend CEO. “We now have assembled years of valuable data for our credit scoring model, which can rely on for driving profitable growth.”
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