Singaporean fintech MatchMove has confirmed that $80 million of the $100 million investment from Nityo Infotech announced earlier this year comes in the form of in-kind contributions, such as technology services, specialist personnel, cost synergies, and enhanced sales and distribution.
As early as August, DealStreet Asia reported that $80 million of the investment is in-kind. Around the same time, reports indicate that both parties have also worked out a manpower co-sharing agreement and a timetable for payment tranches over time. Since the announcement of the $100 million investment in June, no records have shown the investment actually arrived.
KFC Ventures, the corporate venture capital arm of Nityo, put up the cash for MatchMove. This makes KFC Ventures a major minority investor in MatchMove.
MatchMove has also filed a preliminary prospectus with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) showing that it has allocated over 66 million Series C shares to KFC Ventures. The total consideration of $99.8 million, which will be paid in instalments, is stipulated in the contract between the two firms.
Meanwhile, the cash portion of $20 million will be disbursed in quarterly instalments and MatchMove will only spend it on its quarterly costs. The firm will pay out quarterly payments until one of the milestones are met, including MatchMove reaching $50 million in equity/debt or an exit.
With this new development, the Monetary Authority of Singapore (MAS) has finally given the go-ahead for the investment, which will allow MatchMove to continue to operate independently. This also signals the closing of MatchMove’s Series C funding round, which takes its valuation to around $600 million.
Nityo will further support MatchMove as the latter plans to expand its footprint in 2022 and enter new markets like the United States, Europe, and South America.
“Since we signed the term sheet, Nityo’s global business development team has begun identifying and opening up high-value client prospects for us and we are engaged with many of their long-standing, worldwide customers. We now have operations in seven markets and an impressive set of new clients and high caliber employees whom we have attracted in the last 12 months,” said Shailesh Naik, CEO and Founder of MatchMove.