Netizen Journalist

Modalku Acquires CardUp, Starts Expansion into Payment Services Business

Holiday Ayo - The Modalku Group announced the acquisition of CardUp, a Southeast Asian payments solution. Through this acquisition, the Modalku Group will acquire CardUp payment capabilities, including card payments to users who do not accept card payments (domestic and international), online payment acceptance, invoice automation facilities, as well as licensing and integration with business software from third parties.

However, it did not announce the purchase value because it was waiting for regulatory approval.

"With this acquisition, we can accelerate the company's leadership in the regional fintech market by combining payment service capabilities, enhancing user experience, and adding local licenses to Modalku Group's digital lending services in our key markets," said Funding Societies Co-Founder and CEO. Modalku Indonesia, Reynold Wijaya, was quoted from, Wednesday (29/6).

This acquisition is one of the significant business activities carried out by the Modalku Group during 2022. In February 2022, the Modalku Group received Series C+ Funding of US$ 294 million, of which US$ 144 million came from equity funding.

Recently, Modalku Group also invested in Bank Index in Indonesia, launched a virtual business card under the name Elevate in Singapore, and launched a business in the Vietnam market. All of this is done to strengthen and expand the range of corporate financial services for MSMEs.

Reynold also said that this acquisition came at the right time because the MSME segment is projected to drive the ASEAN digital financial market to US$ 60 billion by 2025, while the regional business payments sector is projected to grow at a CAGR (Compound Annual Growth Rate) of 10% over the next five years.

Once the acquisition process is complete and approved by regulators, the Modalku Group will welcome CardUp Founder and CEO Nicki Ramsay as a member of the management team to lead the company's payments business while retaining all CardUp employees in Asia.

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. Modalku Group and CardUp will take advantage of synergies between companies, namely through human resources, technological innovation, as well as banking and technology partnerships to continue to empower MSMEs in Southeast Asia.

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