With the acquisition, MatchMove is enabled to provide its banking-as-a-service capabilities to Shopmatic’s ecosystem of more than one million e-commerce customers, mostly SMEs
Singapore-based fintech firm MatchMove has acquired e-commerce start-up Shopmatic for $200m to create a combined embedded finance and e-commerce provider.
The combined company will become a part of MatchMove Group, while the two parties will retain their individual customer-facing brands for the immediate period.
Shopmatic CEO Anurag Avula will continue to lead the Shopmatic, while MatchMove CEO Shailesh Naik, will lead the MatchMove Group.
The business combination will create a combined, large-scale fintech firm that serves more than one million business customers and their users.
Also, the merger will strengthen its position as a unique B2B platform meeting the real and growing need in the fintech and e-commerce market, said MatchMove.
MatchMove CEO Shailesh Naik said: “Demand for embedded finance and e-commerce is growing extremely fast. Shopmatic has built an amazing business and team with proven e-commerce tools which support SMEs to trade online.
“The acquisition provides a large user base to deploy our financial services, reaching a huge sector of the economy at scale.
“Enterprise customers can now completely digitalise their supply chains – providing services like supply chain lending and vendor payments through a single platform to Shopmatic’s ecosystem of SME customers.”
Shopmatic provides small businesses with a complete e-commerce presence, including chat, social media, webstore and automated access to the large e-marketplaces.
The company has seen retail e-commerce sales of around $4.9 trillion last year, which is estimated to grow by 50% in the coming four years, to reach around $7.4 trillion by 2025.
MatchMove provides enterprise customers with customisable APIs, which enable them to offer own-brand digital wallets, in addition to virtual and physical cards through Visa, Mastercard and WePay.
With the acquisition, MatchMove is enabled to provide its banking-as-a-service capabilities to Shopmatic’s ecosystem of more than one million e-commerce customers, mostly SMEs.
Through the virtual account related to its platform, it is expected to help Shopmatic and its merchants to improve their receivables and reduce the cost of managing payments.
Shopmatic CEO Anurag Avula said: “We are building a scalable, business-friendly platform-as-a-service with intelligent tools and data, so every business has the ability to create amazing products to address their markets and while addressing the challenges of moving digital money securely.
“MatchMove plans to provide modular services, so customers can select and tailor the digital services they need to deliver their commercial objectives.
“In addition to their existing e-commerce services, Shopmatic merchants will now be able to access embedded banking-as-a-service through MatchMove, enabling their buyers to make and collect payments seamlessly and at a lower cost.”