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Owner of the financial products websites Seedly and SingSaver, MoneyHero, has made an acquisition bid of $10.5 million for rival MoneySmart. Announced on August 23, the bid places a value on the deal of about USD 8 million, subject to change depending on the results of the due diligence process. Cash will be used to settle any additional valuation, and new MoneyHero shares will be used to pay for the acquisition.
CEO of MoneyHero Rohith Murthy stressed the acquisition’s strategic importance, pointing out that it will solidify their position as the industry leader in Southeast Asia. “This acquisition will advance our technological innovation, services, and products,” said Murthy. “We think that our customers and shareholders will benefit greatly from the synergies created by this merger.”
MoneyHero, formerly known as CompareAsia Group and founded in Singapore in 2014, changed its name to Hyphen Group in 2020 upon purchasing Seedly from ShopBack. The company runs a number of online comparison and recommendation platforms for personal financial goods, including insurance, mortgages, credit cards, and loans. Its platforms include the Singaporean SingSaver and Seedly, as well as comparable programs in the Philippines, Malaysia, Hong Kong, and Taiwan.
MoneyHero’s direct rival is MoneySmart, which offers comparisons of financial products as well. The attempt to purchase MoneySmart comes after a recent legal battle in which MoneySmart tried in vain to impose a non-compete agreement on a former executive who is currently employed by MoneyHero’s CAG Regional Singapore.
Following MoneyHero’s recent restructuring, which included the firing of 80 staff in July as part of a cost-cutting drive, comes the proposed acquisition. Murthy gave employees the reassurance that the layoffs had no indication of wider problems and were instead meant to strengthen the company’s long-term financial stability.
Following a merger with Bridgetown Holdings, a special-purpose acquisition company supported by Richard Li’s Pacific Century Group and Peter Thiel’s venture firm, MoneyHero went public on the Nasdaq stock exchange in October 2023. MoneyHero’s share price has decreased by around 77% since its launch; on August 22, it closed at USD 1.25, giving the company a market valuation of USD 49.28 million.