SINGAPORE - Singapore-based fintech start-up MatchMove has acquired home-grown e-commerce firm Shopmatic in a US$200 million (S$276 million) deal.
MatchMove, which helps companies embed services such as digital payments, remittance and loans into their platforms or mobile apps, will own 100 per cent of Shopmatic under the stock-swap deal.
It had previously acquired an undisclosed stake in Shopmatic, reportedly for a few million dollars in cash.
The latest acquisition will allow MatchMove to provide its capabilities to more than a million of Shopmatic's small and medium-sized enterprise (SME) customers, said both companies on Monday (May 23).
Shopmatic, founded in 2014, helps businesses to have a presence online through the likes of social commerce features and assists them with managing their inventory on multiple e-commerce sites through a single platform.
The combined entity aims to have revenue of US$400 million and four million customers across 15 countries by 2026.
MatchMove chief executive Shailesh Naik said demand for financial services that non-bank companies offer directly to their customers is growing extremely fast, as is e-commerce itself.
E-commerce sales in the Asia-Pacific are expected to nearly double to hit US$2 trillion by 2025, according to market research firm Euromonitor.
Mr Naik noted that SMEs are a crucial part of the economy, accounting for the majority of jobs.
"SMEs need everything on a plate, understandably, because they don't have the time and know-how. For us to truly embed our finances into that section of the economy, we need to have reach," he noted.
MatchMove's customers will be able to provide services, such as supply chain lending and vendor payments, through a single platform to Shopmatic's SME customers.
Shopmatic CEO Anurag Avula said the company uses third-party payment solutions so the integration with MatchMove will augment its capabilities, including making it easier for merchants to make and collect payments.
MatchMove allows companies to offer digital wallets under their own brand, as well as virtual and physical cards through Visa, Mastercard and WePay.
It also provides virtual accounts that help businesses receive funds from daily sales.
"This solution also helps Shopmatic and its merchants improve their receivables and reduce their cost of managing payments," said the two companies.
The combined entity will operate under the MatchMove Group name, although MatchMove and Shopmatic will retain their individual brands for now.
Mr Avula will continue to lead Shopmatic, while Mr Naik will helm the Singapore-headquartered group, which will have around 250 employees.
The deal is the first in a series of planned acquisitions by MatchMove, which was founded in 2009 and has a presence in seven markets across South-east Asia, India and Hong Kong.
Mr Naik said MatchMove has also identified acquisitions in Malaysia, Taiwan, Thailand and possibly Japan.
"That will give us the footprint we need for Asia," he said.