SESAMi Holding, an e-procurement platform in Singapore, has announced an equity merger with Capital Match Holdings, a P2P lending and SME financing platform with operations in the city-state and Hong Kong.
Other details of the transaction were not disclosed.
Together, the companies will bring a fully integrated supply chain financing solution to corporates, so that suppliers will be able to provide B2B financing in an automated and cost-efficient manner. After an initial roll-out in Singapore, the combined entity plans to expand to other countries in Southeast Asia through greenfield development, partnerships and/or acquisitions.
As per a press statement, the merger will see a combined entity with pro forma revenues of more than S$20 million (US$14.6 million) and profitable on an EBITDA basis.
Ong Teck Soon, CEO of SESAMi, said, “Over the past 20 years, we have firmly established our presence as Singapore’s largest e-sourcing and e-procurement solution provider to corporates and their suppliers serving some of the most prominent companies in Singapore such as Singtel, Singapore Airlines, National University of Singapore and National Healthcare Group, among others. We decided to go ahead with Capital Match as the most innovative and trustworthy platform in Singapore to develop a new financing offer to our large trading community.”
Pawel Kuznicki, CEO of Capital Match, said: “This will be a unique value proposition that few companies globally, and none in Southeast Asia, offer. We aim to revolutionise the way the financing to B2B businesses is done.”
SESAMi was founded in 1999 by a consortium of large corporates to develop e-sourcing and e-procurement services. SESAMi provides the tools and the platform where businesses of all sizes come together to manage their buying and selling processes online. Over the years, the company has expanded into other services like demand aggregation. Today, SESAMi processes around S$6 billon of e-purchase orders and S$2 billion of e-invoices annually on its platform.
Capital Match was founded in 2014 as a peer-to-peer lending platform, but over the years it has evolved to primarily focus on invoice financing services. Since its inception, the company has facilitated more than S$100M in financing from retail, accredited and institutional investors to SMEs in Singapore and Hong Kong.
The startup has raised more than S$5 million in equity from investors, including Dymon Asia Ventures and Eduardo Saverin’s B Capital Group. This includes an oversubscribed Series B round led by B Capital Group in January this year.