Singtel to sell mobile wallet Dash to Western Union for undisclosed amount

SINGAPORE – Singtel is offloading its Dash mobile wallet to money transfer and payment giant Western Union for an undisclosed amount.

The sale of the app, which was launched a decade ago and has more than 1.4 million users, is part of Singtel’s push to streamline “its structure and portfolio to boost innovation and growth opportunities”, it said on Oct 24.

The telco told The Straits Times that there would be no job cuts associated with the transaction, with staff either redeployed elsewhere within the firm or joining Western Union. It declined to reveal the number of staff employed at Dash.

Singtel, which noted that the sale is subject to regulatory approvals, declined to comment on the sale amount.

Analysts said the deal amount was probably insignificant.

Morningstar senior equity analyst Dan Baker said: “If the value of Dash was significant, then Singtel would disclose it.”

CGS International equity analyst Kenneth Tan agreed and said: “I don’t think the sale moves the needle much in terms of asset monetisation or financials.”

Mr Tan speculated that the sale price could be anywhere between $30 million and $50 million.

This is based on the assumption that a fintech is worth about three to five times its revenue, which in Dash’s case was $10 million according to a disclosure several years ago, even though it had been loss-making. “I would assume Dash’s top line has come down further since then,” Mr Tan added.

Singtel Singapore deputy chief executive Anna Yip said: “We will work closely with Western Union to ensure that our Dash customers and business partners continue to be well-supported, and the transition is seamless.”

The company is on a three-year path of “sustained value realisation”, with $6 billion worth of assets it intends to sell.

Singtel’s shares closed trading at $3.20 on 24 Oct, up two cents, or 0.6 per cent.