GoLogiq Plans to Acquire Swedish Fintech Company, Fram Venture 7, and its Vietnamese SME-Lending Platform, DragonLend

NEW YORK and STOCKHOLM, Sweden and HO CHI MINH CITY, Vietnam, Aug. 17, 2023 (GLOBE NEWSWIRE) -- GoLogiq, Inc. (OTC:GOLQ), a U.S.-based global provider of fintech and consumer data analytics, has signed a non-binding letter of intent to acquire all of Fram Venture 7 AB, a Swedish fintech corporation, for US$6 million in an all-stock transaction. Total consideration could increase to US$20 million depending upon the achievement of certain earn-out targets.

The acquisition includes all of Fram Venture 7’s equity interest in its wholly-owned subsidiary, DragonLend, a lending platform for profitable small and medium-sized enterprises (SME) 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.

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, they are having challenges accessing finance, with approximately 62% of total SME financing needs unmet, according to a press release from IFC. IFC estimates Vietnam's financing gap for SMEs is approximately US$21.7 billion.

DragonLend is addressing this opportunity by offering businesses fairer, faster and easier access to short-term working capital for fuelling their growth. Through the application of its proprietary risk model and working closely with its clients, DragonLend can issue finance solutions in a matter of days versus weeks or months as is typical of more traditional lending institutions. DragonLend's vision is to become Vietnam’s most trusted and reliable working capital provider for profitable SMEs.

DragonLend was founded in 2019 and issued its first loan in 2020. Despite substantial Covid-19 restrictions and a challenging business climate, DragonLend has disbursed close to US$9 million since 2020, and plans to serve thousands of SMEs countrywide in the coming years with flexible product offerings and best-in-breed client service. DragonLend clients are primarily engaged in various supply chain verticals, such as manufacturing, wholesale and distribution.

The team behind DragonLend are experienced builders of companies in frontier markets. They are from the Swedish-Vietnamese investment group Fram Skandinavien (NASDAQ First North: FRAM B). This includes Fram Venture 7’s chairman, Christopher Beselin, who founded and previously served as CEO of Lazada Vietnam. Lazada Group was sold to Alibaba for US$3.5 billion.