MatchMove to aquire stake in ecommerce enabler Shopmatic

Ecommerce and digital banking have a strong connection in Southeast Asia. According to a recent report from S&P Global Market Intelligence, ecommerce sales in the region may reach nearly US$80 billion in 2022, up from US$41.3 billion in 2019. So, digital banks looking to serve users linked to ecommerce companies could scale more easily.

Today, Singapore banking-as-a-service platform MatchMove announced that it’s set to make a strategic investment in ecommerce enabler Shopmatic. Financial details of the transaction were not disclosed.

Photo credit: MatchMove

The deal will allow MatchMove to extend its e-wallet capability to Shopmatic’s ecosystem of more than 435,000 ecommerce small and medium-sized enterprises and individual entrepreneurs across the region. It will power digital payments and provide cross-border remittance capabilities to enable these ecommerce companies to make and receive payments, according to a statement.

The move comes shortly after MatchMove announced that it had teamed up with Singapura Finance, Lightnet, and OpenPayd to apply for a digital full bank license in Singapore. Shopmatic co-founder and CEO Anurag Avula said his company will be working with MatchMove as its go-to-market partner in its digibank bid.

Shailesh Naik, the founder and group CEO of MatchMove, earlier said that the company has formed a network of fintech businesses with a large access to retail customers and SMEs, adding that the network includes an ecommerce enabler in Asia.

Naik said the strategy will allow the digibank to reach more customers and make its services available at a lower cost.

Last year, the startup also acquired a strategic stake in peer-to-peer lender MoolahSense.

Singapore-headquartered Shopmatic, which was established in 2014, provides solutions to help SMEs set up an online store. Its offerings include setting up the storefront, payments, shipping and logistics integrations, sales management, and customer support. The platform integrates with several channels, enabling customers to sell on Amazon, Lazada, Qoo10, Shopee, Facebook, and Instagram, among others.

Last year, Shopmatic acquired Octopus and CombineSell to drive an omnichannel play for individual entrepreneurs and businesses in emerging markets. It currently operates in India, Hong Kong, China, Malaysia, the Philippines, and the UAE.