Singapore Finance invests USD 3 million in MatchMove PowerBank, Companies & Markets

Mon, Oct 19, 2020 – 12:47 PM

Finance firm Singapore Finance is investing US $ 3 million in MatchMove PowerBank (S) Pte Ltd (PowerBank), a wholly-owned subsidiary of MatchMove Pay, a local digital payments start-up.

The Singapore Finance-MatchMove consortium is a candidate for a full digital banking license in Singapore.

In a stock market request Monday, Singapore Finance, listed on the motherboard, said it had entered into a PowerBank share subscription agreement on October 16.

Singapore Finance will provide $ 3 million in financing to support the creation and growth of PowerBank, he said. The investment will include US $ 1 million in equity financing and US $ 2 million in convertible debt financing. These will be funded from the group’s internal resources, Singapore Finance said.

The convertible debt is convertible into Class A ordinary shares of PowerBank, subject to terms agreed with PowerBank, Singapore Finance added.

Following the completion of the equity financing, Singapore Finance will own approximately 10 percent of the share capital of PowerBank on a fully diluted basis, or approximately 1.8 million Class A common shares of the company.

Singapore Finance said the investment was an opportunity for it to acquire a “strategic stake in a company that has significant long-term growth potential”. He added that the transaction meets one of his strategic objectives of investing in the financial technology sector, which, according to its board of directors, could offer “synergistic opportunities to achieve growth in the financial services sector. “.

In October last year, Singapore Finance also paid US $ 5 million for a 1.6% stake in MatchMove.

PowerBank was incorporated by MatchMove in Singapore in June this year to apply for digital banking licenses that can be issued by financial market regulators in Singapore and other ASEAN countries.

In January of this year, Business time reported that Singapore Finance and MatchMove have teamed up in hopes of obtaining a digital banking license in Singapore.

This was confirmed in March, when MatchMove put its ambitions on the table, bidding for a full digital banking license in the Republic, with a significant capital requirement of $ 1.5 billion. To do so, MatchMove then said it would lead a consortium made up of three other financial industry partners – Singapore Finance, UK fintech OpenPayd and Lightnet, linked to the CP group in Thailand.

As of June 18, 14 of the 21 digital banking apps have moved to the next stage of assessment. They include five full digital banks and nine wholesale digital banks.

Citing two sources familiar with the matter, Reuters previously reported that those shortlisted for the next round of the digital full banking license selection process include Grab and Singtel’s joint venture, the solo candidate Sea Ltd, a group led by Razer Fintech, as well as the MatchMove-Singapore Finance Consortium.

Beyond – a consortium led by Ron Sim’s V3 group – said it has completed the next round of evaluating the full digital banking license, according to Reuters.

Singapore Finance shares last traded at 79 Singapore cents on Friday, down 1.5 cents or 1.9 percent.

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