MoneyHero cuts loss by 56% in H1 ahead of SPAC listing

Photo credit: MoneyHero Group

MoneyHero Group is set to start trading on the Nasdaq later today after merging with Bridgetown Holdings Limited, a special purpose acquisition company backed by Pacific Century Group and Thiel Capital. This is MoneyHero’s second attempt to list after its deal with Provident Acquisition Corporation in 2021 fell through.

The transaction values MoneyHero at an enterprise value of around US$310 million and an equity value of roughly US$283 million after reflecting net proceeds from the deal, according to a press statement.

MoneyHero received about US$100 million in gross proceeds from Bridgetown’s trust account, after redemptions of about 36% of Bridgetown’s public shares.

Previously known as Hyphen Group or CompareAsia Group, MoneyHero connects its users to financial products through its comparison platform. It also offers market education services, helping users make better financial decisions.

The company has a presence in Hong Kong, Singapore, Taiwan, Malaysia, and the Philippines. Some of its brands include SingSaver, Money101, CompareHero, Seedly, and Moneymax.

For the first half of this year, MoneyHero cut its operating loss by 56% to US$9.7 million, according to a filing with the US Securities and Exchange Commission.

The firm also reduced its adjusted EBITDA losses to almost US$1 million in the first half of this year from roughly US$10 million in the same year-ago period. However, MoneyHero’s revenue growth remained relatively flat throughout H1 2023. 

The company conducted two rounds of layoffs in 2022, which it said was part of its efforts to streamline its organizational structure. The first round affected 20% of its workforce at the time, while the second saw 15 workers – including general managers – get cut.

Tech in Asia has reached out to MoneyHero for additional comments.

See also: Layoffs at Richard Li-backed Hyphen Group after SPAC deal falls through