DigitalCFO Newsroom | 22 February 2022
M-DAQ, a leading Singapore-based fintech company today entered into a definitive agreement to acquire Wallex, a B2B cross-border payments provider.
M-DAQ, a leading Singapore-based fintech company today entered into a definitive agreement to acquire Wallex, a B2B cross-border payments provider with licenses in Hong Kong, Indonesia, and Singapore. The acquisition is the first of a series for M-DAQ, as it embarks on a global growth plan to capture market opportunities and expand its downstream reach in the value chain.
In addition to the amount paid for the full acquisition, M-DAQ will also be injecting fresh working capital to accelerate the Wallex business. The combined entity is expected to process in the excess of S$15 billion (US$11 billion) of Gross Transaction Value (GTV) this year.
Wallex will continue as an independently operated business and brand, with Hiro Kiga, Co-Founder and COO, appointed as the new CEO.
Supporting synergies to scale
Wallex facilitates B2B cross-border payments in Indonesia, Greater China, and Singapore by offering seamless, fast transactions with competitive rates and fees into 180+ countries. Businesses benefit from multi-currency solutions to collect payments via virtual accounts and hold funds in a digital wallet. With customisable APIs, leading fintechs in Asia can leverage Wallex’s infrastructure to build tailored cross-border offerings.
Despite Covid-19, Wallex registered 5.5x growth in its annualised revenue. Wallex supports nearly 2,000 banking and technology clients, processing almost S$4 billion in GTV annually.
The acquisition provides synergy to both. Through Wallex, M-DAQ clients can utilise versatile tools for funds transfers through its currency corridors, improving reporting accuracy and regulatory reporting requirements. Through the M-DAQ proprietary solution, Aladdin, Wallex customers can experience guaranteed FX rates and more competitive pricing through its aggregation and algorithmic capabilities.
Richard Koh, Founder and Group CEO, M-DAQ, says, “Investing in businesses with strong growth potential is one of our core strategies, as we expand our ecosystem. We are excited to welcome Wallex into the M-DAQ Group to strengthen our footprint in the payments space by reaching a wider range of SMEs and their customers as we look to provide additional value and cost reductions to their businesses. Both organisations will continue with their aggressive hiring to scale further.”
“M-DAQ is also investing in building an ecosystem that complements the core FX business. In this instance, M-DAQ will be the upstream FX provider to supply Wallex with the necessary liquidity it needs to run its core payments business. This B2B2b2c business model is an ecosystem of businesses that complements each other, reduces duplication, increases efficiency, and ultimately reduces transaction costs for the end clients, as economies of scale are materialised,” adds Mr. Koh.
Wallex’s co-founder and CEO Hiro Kiga says, “At Wallex, we have always strived to deliver the most cost-efficient, fast, and secure payment solutions for global businesses. The combination of Wallex’s network and M-DAQ’s fintech expertise will enable us to deliver greater value to empower businesses across borders. We look forward to achieving our goals together, by creating new opportunities that leverage the strengths of each platform.”
Understanding global money movements with M-DAQ’s Aladdin solution
Cross-border payments have grown significantly due to rising demand from all businesses to engage in international trade. With a six-year track record of providing price certainty, M-DAQ’s flagship FX solution Aladdin, has cleared close to S$30 billion cross-border transactions. The solution currently empowers two of the largest internet ecosystems in China. Aladdin enables customers on eCommerce platforms to shop in their home currency while allowing merchants to receive payment in their preferred currency.
The transaction is subject to customary closing conditions and regulatory approvals.