Two Singapore-based FinTechs are combining their services to create a unified supply chain financing tool.
Reports in Vulcan Post on Thursday (Nov. 8) said that eProcurement platform SESAMi and alternative and invoice financing firm Capital Match are merging their companies to roll out a “fully integrated supply chain financing solution to corporates and their suppliers,” the companies said in a joint announcement.
The combined company will initially roll out in Singapore, though they plan to expand throughout Southeast Asia, potentially via additional acquisitions or strategic partnerships. New and existing shareholders have reportedly backed the merger with an injection of new funds, the publication said, though the firms declined to reveal how much was raised.
Dymon Asia Ventures increased its stake in the firms, while OSK Ventures International Berhad signed on as a new investor.
Singapore is a key market for FinTechs, particularly those looking to expand across Asia. Reports earlier this year revealed that investment in Singapore’s FinTech sector reached nearly $1 billion last year, overtaking Hong Kong in funding value in 2016.
One of the nation’s FinTechs, InstaReM, recently spoke with PYMNTS about the role Singapore plays for the industry. The firm’s Co-founder and CEO Prajit Nanu described the country as having “a FinTech-friendly regulatory framework” and “a good springboard” to grow across Asia.
Government initiatives have also pushed for payments digitization and FinTech adoption. In June, the government rolled out PayNow for corporates, a solution developed by the Monetary Authority of Singapore, to reduce the use of cash and checks in the country.
“The aim is not to force a cashless society, but to enable everyone to enjoy the convenience and efficiency of ePayments – simple, swift, safe and seamless,” said Education Minister Ong Ye Kung, a member of the Monetary Authority of Singapore, in a statement at the time. “When the level of convenience and confidence crosses a critical tipping point, adoption will rise across our population within a short time and become pervasive.”