Evaluating only Pace’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Founded in Singapore; BNPL across SEA markets
FUNDING
Raised $40M at $350M; expanded to 4 markets
PRODUCT LAUNCH
US Fed and MAS begin rate hiking cycle; cost of capital spikes
PRODUCT LAUNCH
Atome, Grab PayLater compete with larger war chests
FUNDING
Announced shutdown; returned remaining capital to investors
Full Analysis
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Documented cause
Pace was a Singapore-based buy now, pay later startup founded in 2021, operating across Singapore, Malaysia, Hong Kong, and Thailand. It raised $40 million from investors including Vertex Ventures and raised at a $350 million valuation at its peak. The BNPL model that appeared viable at near-zero interest rates became structurally unsound as Singapore's MAS raised rates and lenders' cost of capital increased. Pace also faced intense competition from Atome (backed by Advance Intelligence Group), Grab PayLater, and global players like Klarna and Afterpay. In 2023, Pace announced its shutdown, citing challenging macroeconomic conditions, and returned what capital remained to investors.
Lesson
“BNPL economics are predicated on near-zero cost of capital. Entering an emerging market BNPL space in 2021 — just before one of the fastest rate-hiking cycles in history — was timing that no product advantage could overcome.”