GXS Bank has received a S$229.5 million capital injection from backers Singtel and Grab, according to regulatory filings with the Accounting and Corporate Regulatory Authority of Singapore.
Grab took up the majority of the 229.5 million shares at S$1 apiece. It was allotted 191.8 million shares, while Singtel was alloted 37.7 million shares.
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This capital injection is part of a scheduled share issuance and allotment announced in a shareholders’ resolution in January, when Grab poured in S$145 million. Singtel was allotted 90.1 million non-paid up shares in this round as part of the resolution.
GXS’ latest financials showed widening losses, with FY 2023 ending December 31 reporting a loss of S$208.2 million from a loss of S$132.5 million a year prior, according to regulatory filings pulled by data platform Handshakes. Its full-year revenue increased to S$16.1 million from S$5.1 million in FY 2022.
The digital bank disbursed more than 100,000 loans in the first year of its FlexiLoan product, a credit product targeted at gig workers and underserved bank customers. There is traction for FlexiLoan with segments already well-served by traditional banks, GXS said.
Deposits in both GXS and Malaysia GXBank rose to US$479 million at the end of Q1 2023 from US$36 million in Q1 2022, according to Grab’s financial results. Quarter on quarter, deposits grew from US$374 million. The increase was driven mainly by GXBank, with more than 90% of its depositors being Grab users.
This story was republished with permission from The Business Times. It was moderately edited to reflect Tech in Asia’s editorial guidelines.
Editing by Eileen C. Ang
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