Hong Kong-based TNG FinTech Group has acquired Indonesian payment startup WalletKu for an undisclosed sum, according to its statement.
After the acquisition, WalletKu will be integrated into Global E-Wallet Alliance, an initiative by TNG in 2016, which includes TNG Wallet and 12 member e-wallets in China, Indonesia, the Philippines, Singapore, Malaysia, Thailand, Vietnam, India, Sri Lanka, Bangladesh, Nepal and Pakistan. Users of any e-wallet within the alliance can conduct real-time money transfer to users of another e-wallet, TNG said in a statement last weekend. In addition, the platform enables simultaneous social networking and financial transactions by helping users send instant message and conduct P2P calls. In an earlier statement in March 2018, WalletKu said, TNG had invested in a majority stake in the company in November 2017. “We are thrilled to be joining forces with such a fintech powerhouse. This is an outstanding opportunity to enhance our existing suite of digital solutions and supercharge WalletKu’s growth, leveraging TNG’s technology and infrastructure,” said Farid MN, CEO of WalletKu. Established in 2016, WalletKu offers a range of digital products, including prepaid mobile phones credit top up, bill payments, hotel, airline, and sports ticket bookings and payments, which facilitate the finance cycle in Indonesia and help bridge with overseas financial systems. The company has acquired over three million users and achieved an average monthly compounding growth of 27 per cent since January 2018. Nearly 65 per cent of Indonesia’s population is unbanked and they take up a significant portion of WalletKu’s user base, according to Alex Kong, founder and chairman of TNG. TNG is providing financial inclusion and fintech services to the 1.2 billion unbanked population in Asia. Kong said the acquisition of WalletKu was a perfect portfolio fit to further facilitate its goal. Last week, TNG also announced the acquisition of a 60 per cent equity interest in mobile transaction gateway Tranglo from Malaysian government-owned fund management firm Ekuiti Nasional Bhd in a $28-million deal. Investors and consumer tech companies in other parts of Asia are aggressively ramping up their payment footprints in the Southeast Asian market through investment in local players, focusing on countries with exciting demography like Indonesia, Vietnam and the Philippines. Payment and other digital financial services are critical for companies like ride-hailing unicorns Grab and Go-Jek to develop their ecosystem. While Grab acquired Indonesian startup Kudo to fuel its expansion, Go-Jek also bought three fintech firms in its home market. Most recently, Indonesia’s digital payments and e-commerce platform KinerjaPay is in the process of acquiring mobile prepaid top-up data package provider Mitra Distribusi Utama. Meanwhile, a consortium of investors led by global alternative investment firm KKR and Chinese Internet behemoth Tencent will be buying new shares of Filipino fintech company Voyager Innovations for a total of $175 million. In Vietnam, Grab has acquired e-wallet operator Moca, following past investments into local e-commerce platforms by Chinese majors such as Tencent, JD and Alibaba.
