Finance Companies Acquire CardUp, Drive Payments Expansion
- The acquisition of the digital payments platform will take place in June and is subject to regulatory approvals
- The digital lender will benefit from CardUp’s range of technologies and payment solutions, further expanding its financial services beyond lending
SINGAPORE, June 29, 2022 /PRNewswire/ — Finance Companies, South East Asia the largest digital finance platform for small and medium-sized enterprises (SMEs), today announced the acquisition of regional payment solution, CardUp, for an undisclosed sum*. Through this move, the company will acquire CardUp’s payment capabilities such as card payments to non-card accepting recipients (domestic and cross-border), online payment acceptance, invoice automation tools as well as its licenses and integrations with renowned third-party enterprise software. . CardUp’s payment services will complement lending products from finance companies, to provide a unified financial experience for SMEs in the region, allowing SMEs to manage and pay their expenses, receive payments and borrow funds within a single transparent digital platform.
(L to R): Kelvin Teo, Co-Founder and Group CEO, Funding Societies | Modalku; Nicki Ramsay, Founder and CEO, CardUp
Acquisition follows Funding Societies’ recent Series C+ fundraising US$294 million in February 2022whose $144 million was raised in equity, and its recent investment in Bank Index in Indonesialaunch of the Elevate professional virtual card in Singapore and entry into Vietnamstrengthening the company’s range of financial services for SMEs.
Launched in 2016, CardUp is a Singaporepayment solution that helps individuals and businesses make payments to suppliers and collect payments from customers digitally. With presence in Singapore, Malaysiaand hong kong, CardUp has served tens of thousands of businesses, including micro-enterprises, SMEs, and enterprises in a range of B2B and C2B industries. These businesses use CardUp for payments related to payroll, rent, corporate tax, supplier payments, receivables flows and cross-border expenses. CardUp is seeing huge demand from businesses looking to save time and money through payment digitization, which is reflected in its rapid growth, increasing 53% from the previous quarter.
Co-founder and CEO of the group of finance companies | Modalku, Kelvin Teosaid, “Having known Nicki and CardUp since 2018, we find that CardUp has an excellent cultural and strategic fit. The acquisition of CardUp allows us to leapfrog and accelerate our market leadership in the regional FinTech space, integrating payment capabilities, enhanced user experience and local licensing into our digital lending experience in key markets. We are excited to work with the team at CardUp and honored to partner with them.”
The acquisition comes at the right time as SMEs are expected to push the ASEAN digital finance market towards $60 billion by 2025, while the region’s corporate payments industry grows at a CAGR of ten% over the next five years. The transaction supports ASEAN SMEs’ current drive to digitally transform their financial processes, save time and money, and better serve their customers through next-generation financial tools and services.
Founder and CEO of CardUp, Nicki Ramsaysaid, “We have long recognized Funding Societies as the regional leader in SME finance and a complementary counterpart to our expertise in payments. This acquisition reflects a strong strategic and cultural synergy with both parties aligned on the mission of helping SMEs improve the way they operate. their business and manage cash flow. We are confident that CardUp and our employees are in good hands with Kelvin and his team and we are excited to be working on this next chapter of growth together.
Once the acquisition is finalized and approved by regulators, finance companies will welcome Nicki Ramsay into its leadership team to lead its payments business while retaining all CardUp employees across Asia. CardUp will continue to operate its consumer and business services and maintain its longstanding relationships with card networks, issuers and media partners. Finance companies and CardUp will leverage strong synergies in the form of complementary talent, technology, as well as banking and technology partnerships to further empower SMEs in Southeast Asia.
About finance companies
Finance companies | Modalku is the largest digital SME finance platform in South East Asia. It is licensed and registered in Singapore, Indonesia, Thailand, Malaysiaand operates in Vietnam. It is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavour, EDBI, SGInnovate, Qualgro, and Golden Gate Ventures, among others. The FinTech company provides financing to small and medium-sized enterprises (SMEs), annualizing 1 billion US dollars disbursement in 2021. He received MAS FinTech Award in 2016, Global SME Excellence Award at United Nations ITU Telecom World in 2017, KPMG Fintech100 in 2018, Brands for Good in 2019 and ASEAN Startup of the Year by Global Startup Awards in 2020. In 2021, he was honorably named Responsible Digital Innovator of the Year by the World Bank’s IFC SME Finance Forum and won the MAS Fintech award for the second time.
CardUp is a payment solutions provider, offering individuals and businesses a better way to pay and get paid. The platform makes life easier for business owners, bringing together accounts payable and receivable in one easy-to-use digital platform. No-code solutions improve cash flow management, unlock rewards on existing credit cards, and save time through automation, all without software implementation or setup time.
CardUp was founded in 2016 and operates in Singapore, hong kong and Malaysiaand employs full-time employees at 4 sites (Singapore, India, hong kong and Malaysia).
It is approved by the Monetary Authority of Singapore (MAS) as a Major Payment Institution under the Payment Services Act 2019 and is licensed by the Hong Kong Customs and Excise Department (HKCED) as a Money Services Operator.