SG fintech startup M-DAQ bags Series D funding from Affinity Equity Partners

Photo by Kit Suman on Unsplash

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.

The funding is a combination of primary and secondary transactions, per a regulatory filing accessed by DealStreetAsia – DATA VANTAGE

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.