Consolidation in the startup sector in India and Southeast Asia was signalled by the $200 million acquisition of e-commerce company Shopmatic Pte. by Singapore-based fintech MatchMove Pay Pte.
In a joint statement, the two companies announced that MatchMove, a fintech company, had acquired Shopmatic, an e-commerce startup, for $200 million to create an end-to-end service to digitalize the business.
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The combined entity, which will operate as the MatchMove group, aims to generate $400 million in revenue and serve four million customers in 15 countries, including India, by 2026.
Shopmatic, which is based out of Singapore as well, helps small businesses establish an online presence by creating web storefronts and automating integration with the most popular online marketplaces. Shopmatic’s million users will now have access to MatchMove’s fintech offerings, including banking apps, thanks to the acquisition.
According to a press statement, the merged company, which goes by the name MatchMove Group, plans to earn $400 million and amass four million subscribers in 15 countries by 2026.
MatchMove, which provides comprehensive services to help businesses digitalize their products and operations, plans to make a series of acquisitions in the Southeast Asian region, the first of which is this agreement.
The fintech firm’s footprint in Singapore, India, Indonesia, Hong Kong, Malaysia, the Philippines, and Vietnam has expanded quickly in recent years.
For Small and Medium-Sized Business
To help companies better serve their small and medium-sized business (SME) clients, MatchMove offers embedded financial services driven by APIs.
Shopmatic, headquartered in Singapore, provides webstore, chat, social media, and marketplace features to small and medium-sized enterprises (SMEs).
The companies claim that the purchase will allow MatchMove to offer its Banking-as-a-Service (BaaS) capabilities to “over a million” e-commerce SME customers within Shopmatic’s ecosystem.
According to MatchMove CEO Shailesh Naik, “the acquisition gives a vast user base to deploy our financial services, covering a huge portion of the economy at scale.”
He continues, “Enterprise customers may now entirely digitalize their supply chains, providing services like supply chain finance and vendor payments through a single platform to Shopmatic’s ecosystem of SME customers.
For the “immediate period,” Shopmatic will continue to operate under the MatchMove Group moniker, while CEO Anurag Avula will remain in his position.
According to Avula, “This is about promoting the digital economy by merging embedded finance with e-commerce.
According to Avula, “we are building a scalable, business-friendly platform-as-a-service with intelligent tools and data so that any firm has the capacity to create exceptional products to meet their customers and while addressing the issues of moving digital money securely.”
The new company will be known as MatchMove Group internally, although both brands will continue to be used externally for the time being.
When put together, the two companies form a fintech behemoth with over a million company customers and their many users. It further establishes MatchMove as a one-of-a-kind B2B platform in the financial and ecommerce industries, filling a demand that is both genuine and increasing.