1. Startups

Wallex Technologies Expansion Post-Acquired M-DAQ

Planning to expand the market and launch new technologies as a result of the integration of M-DAQ

Cross-border payment transactions have grown significantly, along with the increasing number of companies actively involved in international trade. One company that focuses on remittance services is Wallex Technologies (Wallex).

In early 2022, they were acquired by M-DAQ, a platform that serves businesses in various sectors to facilitate cross-border transactions with Aladdin solutions. To DailySocial, Wallex co-founder and CEO Hiro Kiga revealed some of their plans in the post-acquisition Indonesian market.

Wallex announced presence in Indonesia after get permission transfer of funds from Bank Indonesia at the end of 2018.

Focus on the B2B segment

In the past year the company has been actively developing their technology infrastructure. In terms of business, Wallex has two categories of B2B customers served, namely SMEs and corporations. They also have technology for payments that can be leveraged via an API.

The company claims to have started to enter the scale-up. Strategic cooperation is increasingly being expanded. After the partnership with Investree, in the near future a new fintech platform will be announced in collaboration with Wallex.

"Our technology team has been working hard to improve the best experience, making the process more seamless pattern for fintech partners to connect with us. At the same time, we are also improving our Direct to Customer products and the changes will be seen within the next year," said Hiro.

Using their technology, customers can make payments in over 48 currencies. Customers are claimed to benefit from a fast and smooth transaction process, with competitive exchange rates and fees.

For Indonesia itself, Wallex is currently still focusing on two big cities, namely Jakarta and Surabaya. There are no plans to expand to other big cities in Indonesia.

"We are lucky enough that regulators in Indonesia are now more open to the platforms we present. However, to expand to new cities requires a large amount of money to build infrastructure. For that we do not have plans to expand again," said Hiro.

In the midst of the pandemic, Wallex claims to have managed to record annual revenue growth of up to 5,5x in the past year. The platform serves nearly 2.000 clients in the banking and technology sectors, and processes nearly IDR42 trillion (SG$4 billion) of gross transactions annually.

"In 2022, Wallex has plans to expand products and launch new features to SMEs, while offering them more value. Wallex also has plans to expand into other markets," said Hiro.

Apart from Wallex, several names that have started running online remittance services in Indonesia are: niumZendomoneyOY!Transfezand RemitPro.

Plans after acquisition

[L-R] Richard Koh, Founder & Group CEO of M-DAQ & Hiro Kiga CEO & Co-Founder of Wallex Technologies
In early 2022, Wallex was officially acquired by M-DAQ. This acquisition is the first step for M-DAQ to embark on global growth expansion in order to capture various market opportunities and expand the reach of the downstream value chain (downstream) company.

In addition to the funds disbursed for acquisitions, M-DAQ will also inject new working capital to accelerate Wallex's business. This combined entity will process a gross transaction value of more than IDR158 trillion (SG$15 billion) this year. Furthermore, Wallex will continue to operate as an independent business entity under the leadership of Hiro.

Hiro said, "This acquisition process occurred because previously we already knew each other, between Wallex Technologies and M-DAQ. Seeing the potential and the mission to integrate between technologies, this acquisition is the right step for us."

"The combination of Wallex Technologies' network and M-DAQ's fintech expertise allows us to help cross-border businesses on a much larger scale. We are optimistic that we can achieve business goals together by creating new opportunities that leverage the strengths of each platform, " closed Hiro.

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