The Southeast Asian digital finance platform enters into a deal to buy the payments service player.
Funding Societies, which says it is Southeast Asia’s largest digital financing platform for small and medium-sized enterprises (SMEs), is acquiring CardUp for an undisclosed amount, both companies said in a press release Wednesday.
Funding Societies said it is targeting CardUp’s payment services, and that the combination will provide SMEs with the ability to receive and make payments and borrow funds on one platform. CardUp has a presence in Malaysia and Hong Kong, offering companies payment services for salaries, rent, and similar.
The combination may be part of a trend of consolidation among regional fintechs. Just in recent months, money transfer player Nium entered a deal to acquire Socash (both companies have Singapore state-owned investment company Temasek Holdings as investors). Funding Societies and CardUp share some of the same investors, including Singapore government-linked entities. The deal comes after Funding Societies raised 294 million US dollars, including 144 million dollars of equity, in a February funding round.
