This transaction pegged the valuation of the company at $600 million.
“With this investment and Nityo’s global strength, we are certainly looking to build a decacorn in the future, as we believe MatchMove is the most qualified soonicorn in the fintech space in Southeast Asia,” Nityo Infotech founder and CEO Naveen Kumar said in a statement.
The investment comes as MatchMove’s earlier negotiations with potential investors to raise about $45-50 million fell through in April after it failed to secure a digital banking license from the Monetary Authority of Singapore.
The company had forged a partnership with Singapura Finance, Lightnet, and OpenPayd Holdings to apply for a digital banking license in the city-state to bolster its existing banking-as-a-service portfolio, which would allow it to tap into the digitally underserved segments such as SMEs and gig workers.
MatchMove had placed its bid through its subsidiary firm PowerBank, which will “continue to pursue its regional business strategy to serve the underbanked SMEs and consumers of Southeast Asia,” their email read. “Investors in PowerBank were motivated by the company’s strategy with or without the MAS licence.”
Last month, Singapura Finance disposed of all its shares in MatchMove PowerBank for $1 million. Post the transaction, the Singapore Exchange (SGX)-listed lender
received shares in MatchMove, which increased its shareholding in the firm from 1.6% to 1.9% on a fully diluted basis.
In the past, the firm’s largest shareholder, Vickers Ventures, is understood to have considered merging the firm with its own $120 million Special Purpose Acquisition Company (SPAC) which it priced on the Nasdaq in January, but the plan was discounted due to conflicts of interest.
MatchMove founder and CEO Shailesh Naik considers Nityo’s investment as “game-changing” for the company. The deal, he stressed, will give MatchMove a presence in 38 countries going forward.
“Nityo brings us everything we need to grow: executive experience in growing and expanding a global tech company, thought leadership, growth capital, large and deep talent pools around the world, and existing relationships with many leading organisations,” Naik added.
Nityo was established in 2006 by Naveen Kumar. It provides application management outsourcing, packaged application services, verification and testing, remote infrastructure management, product development and support, among others.
MatchMove currently operates in six markets across South and Southeast Asia, including India, Indonesia, Malaysia, the Philippines, and Vietnam, apart from its home market, Singapore. It plans to launch programmes in Hong Kong, Bangladesh, Malaysia, and Thailand by the end of 2021.