Fomo Group ventures into capital markets in move to expand beyond payments
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Singapore-based Fomo revealed it had acquired controlling stakes in two Singapore Exchange-backed private market platforms.
PHOTO: FOMO PAY
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SINGAPORE - Competition among providers of financial technology services is getting tougher as customer demands evolve and growth capital becomes less readily available.
In response, an increasing number of fintech firms are expanding their offerings, betting that by positioning themselves as one-stop providers of a range of services that are in demand, they will be able to capture and retain a larger share of the market.
One example is Grab, which provides transport, delivery, digital wallet and buy now, pay later services,
To accelerate its aim of becoming a regulated provider of a greater range of fintech services here, Singapore-based Fomo revealed last week that it had acquired controlling stakes in two Singapore Exchange-backed private market platforms – CapBridge and 1exchange – for an undisclosed sum.
CapBridge has a licence to help private investors allocate funds in start-ups at various stages of growth as well as in private equity, venture capital and corporate bonds. Meanwhile, 1exchange enables family-owned businesses and young companies to list and trade their shares on its licensed, blockchain-based private markets exchange.
In contrast to the public market, where securities are traded on public stock exchanges, the private market involves transactions that occur directly between buyers and sellers without being publicly disclosed.
Fomo chairman Louis Liu said the acquisitions would enable the company to penetrate the capital markets and immediately widen its customer base, which comprises banks and enterprises. They will also expand its range of services beyond digital payments and digital banking to include asset management.
In September 2021, Fomo’s payment arm, Fomo Pay, was among the first fintech providers to receive a licence from the Monetary Authority of Singapore to facilitate cryptocurrency transactions here.
Fomo Pay rolled out its first crypto payment solution for retailers here in April 2022, enabling some to accept a range of different cryptocurrencies such as Bitcoin, Ethereum and the USDT and USDC stablecoins as payment. These retailers include luxury car dealer EuroSports Auto,
Fomo Pay was also awarded licences to carry out local money transfer services and cross-border remittances for its clients, as well as to offer payment methods such as GrabPay and Visa QR to merchants here.
Some of Fomo Pay’s other clients here include duty-free shops at Changi Airport and bike-sharing operator Anywheel. It also provides a digital payment solution allowing WeChat users to buy tickets to Resorts World Sentosa and access a range of other services on Sentosa island via WeChat.
“The consolidation of payment, financing, and capital management services within a single, trusted provider is the growing preference of today’s customers,” Mr Liu said.
He added that “Fomo’s suite of licences allows us to be more future-proof in an increasingly regulated industry where compliance takes centre stage”.
Mr Liu said funding avenues for fintech have also tightened over the past year, making it more challenging for firms like Fomo to gain access to growth capital.
The firm last raised around US$13 million (S$17.6 million) in August 2022 in a funding round led by Jump Crypto, comprising a team of builders, developers and traders in Web3 and blockchain technology.
Mr Liu said companies that are able to generate more value by offering multiple fintech services could use this to help present a clearer profit strategy to investors. These companies, in turn, would have a competitive edge in attracting financing.
