Singapore-headquartered financial technology services firm M-DAQ on Friday announced an investment of nearly S$200 million ($147.3 million) from Asian private equity firm Affinity Equity Partners in a Series D round.
Affinity will gain a joint controlling stake in M-DAQ along with its management and employees, and get a board seat, per a company statement. The transaction marks Affinity’s first technology investment in Southeast Asia.
Founded in 2010 by Richard Koh, M-DAQ provides specialised technology-enabled financial services to enterprise customers and other downstream fintech companies. Its proprietary FX solutions process over S$10 billion in cross border transactions annually.
One of its most products, Aladdin, allows customers on e-commerce platforms to shop in their home currency while allowing merchants to receive payment in their preferred currency. The firm has been net profitable since the beginning of 2018.
The fresh funding will support M-DAQ’s global expansion, the startup said in a press statement.
M-DAQ has so far received about S$36.8 million in equity funding from Affinity Equity Partners. The investor received 223 million Series D preference shares at $0.16 apiece, according to a filing with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
The ACRA filings only reflect the money that has been received by a company so far. Companies may receive their funding in tranches, and therefore, M-DAQ may receive more capital as part of the Series D round in the next few weeks.
The filing shows that early-stage venture firm GSR Ventures has sold its entire stake in M-DAQ to Affinity Equity Partners, exiting its investment in the startup. GSR had led M-DAQ’s $11.7 million Series B round in 2013.
The filing further revealed that API (Hong Kong) Investment Limited, a vehicle of Ant Group, has divested part of its stake to Affinity Equity Partners. Ant had participated in M-DAQ’s $87 million Series C round in 2015, alongside EDBI.
Assuming the same share price as the Series D round, Affinity spent S$144.9 million ($106.7 million) on the secondary transactions. DealStreetAsia has reached out to M-DAQ to confirm the pricing for the secondary share sales.
M-DAQ’s other existing investors include Samsung, Hong Kong’s Future Equity Investments Limited, Pisoni Assets Inc, Murano Enterprise Corp, as well as angel investors.
In 2019, M-DAQ had received an unspecific investment from Samsung Group’s venture capital fund in a bid to expand in South Korea and beyond.
According to a Bloomberg report, M-DAQ’s valuation had exceeded S$500 million ($368 million) after Samsung’s pre-Series D investment, up from S$250 million in November 2015.