Singapore fintech firm M-Daq to buy cross-border payments startup

M-Daq, a Singapore-based fintech company, has signed a definitive agreement to acquire Wallex Technologies, a B2B cross-border payments firm that has licenses in Hong Kong, Indonesia, and Singapore. The transaction is pending customary closing conditions and regulatory approvals.

M-Daq founder and group CEO Richard Koh (left) and Wallex Technologies CEO Hiro Kiga / Photo credit: M-Daq

Founded by Jody Ong and Hiro Kiga in 2016, Wallex Technologies helps businesses in Indonesia, Singapore, China, Hong Kong, Taiwan, and Macau to make cross-border payments into more than 180 countries. It also enables these businesses to collect payments from customers in other countries via virtual accounts and hold funds in a digital wallet.

In a statement, Wallex Technologies said that it currently supports almost 2,000 banking and tech clients, processing almost S$4 billion (around US$3 billion) in annual gross transaction value (GTV). After the M-Daq acquisition, the combined entity is expected to process S$15 billion (around US$11 billion) in GTV this year.

According to M-Daq, Wallex Technologies will continue to run independently with Kiga as the new appointed CEO, replacing Ong. On top of the undisclosed acquisition fee, the fintech firm will also invest fresh working capital into Wallex Technologies.

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M-Daq aims to integrate Wallex Technologies with its foreign exchange solution Aladdin. The platform has processed nearly S$30 billion (around US$22.2 billion) in cross-border transactions since 2016. It counts prominent Chinese ecommerce firms such as AliExpress, Tmall, and JD.com as its clients.

In August last year, M-Daq raised US$200 million in a series D round from Asian private equity giant Affinity Equity Partners. The startup also counts EDBI, NTT Communications, and Samsung as its investors.

Earlier this month, M-Daq led the US$1.4 million round of digital wallet platform HolyWally.

In 2020, M-Daq’s revenue declined by 65% to US$20.5 million. The company also swung to a negative EBIT of US$4.3 million in the same year from a US$2.4 million profit in 2019, according to VentureCap Insights data.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.