Modalku Acquires CardUp, Singapore-based Payment Fintech Startup

Modalku Group announces acquisition of CardUp, startup fintech payment solution provider from Singapore with an undisclosed amount. CardUp's capabilities will complement Modalku's loan products in order to provide more integrated financial services for MSMEs in Southeast Asia.

After the acquisition process is completed and approved by local regulators, Modalku Group will welcome CardUp Co-founder Nicki Ramsay as a member of the management team to lead the payments business while retaining all CardUp employees in Asia.

In an official statement delivered today (29/6), Co-founder of Funding Societies and CEO of Modalku Indonesia Reynold Wijaya said that his party has known Nicki and CardUp since 2018. Culturally and strategically, CardUp is very suitable for the Modalku Group.

According to him, with this acquisition, the company can accelerate the company's leadership in the market fintech regionally by combining payment service capabilities, increasing user experience, and adding local licenses to Modalku Group's digital lending services in key markets. “We are excited to work with the CardUp team. Joining them is an honor for us,” said Reynold.

CardUp Founder and CEO Nicki Ramsay added, "We also see the Modalku Group as a complementary partner for the company's expertise in payments. For him, this acquisition reflects the strong strategic and cultural synergy between the two parties.

“We have the same mission to empower MSMEs and have been providing the means for them to get operational business and manage cash flow. We believe that CardUp has a bright future with the Modalku Group and we are delighted to be working together on this new journey,” said Ramsay.

CardUp will continue to operate its business and consumer services, as well as continue its long-term relationships with partners, card issuers and media partners. The two companies will take advantage of synergies, namely through complementary human resources, technological innovation, banking and technology partnerships to continue to empower MSMEs in Southeast Asia.

This acquisition, continued Reynold, is one of the significant corporate actions during 2022. In February last year, the company obtained Series C pendanaan funding valued at $294 million, of which $144 million came from equity funding. Next, invest against Bank Index in Indonesia, launched a virtual business card called Elevate in Singapore, and expanded its business in Vietnam. "All this is done to strengthen and expand the range of corporate financial services for MSMEs."

About CardUp

CardUp was founded in 2016 in Singapore, providing payment solutions for individuals and businesses to pay suppliers and receive payments from customers digitally. Not only Singapore, now the solution has been used by tens of thousands of businesses from various business and industrial scales (B2B and C2B) in Malaysia and Hong Kong. They use CardUp for transactions related to payroll, rent payments, corporate taxes, vendor payments, accounts receivable flows, and fees between countries.

CardUp is licensed by the Monetary Authority of Singapore (MAS) as a Major Payment Institution under the Payment Services Act and is also licensed by the Hong Kong Customs and Excise Department or HKCED. ) as a Financial Service Operator (Money Service Operator).

CardUp is in high demand from businesses looking to save time and money by digitizing payment transactions. This is reflected in the claimed quarterly growth of 53%.

MSME market share momentum

The acquisition move is considered to have the right momentum, as the MSME segment is projected to drive Southeast Asia's digital financial market to $60 billion by 2025, according to a Bain & Company report. Meanwhile, citing McKinsey, the business payments sector will grow at a CAGR of 10% over the next five years.

Modalku provides digital funding services, borrowers (potential MSMEs) can get unsecured business capital loans of up to IDR 2 billion funded by platform lenders (individuals or institutions looking for investment alternatives) through the digital market.

Apart from Indonesia, Modalku also operates in Singapore, Malaysia, Thailand and Vietnam under the name Funding Societies. To date, the Modalku Group has succeeded in disbursing business loans of Rp35,14 trillion to more than 5 million MSME loan transactions in Southeast Asia.