Xurpas buys 23.53% in HK-based Micro Benefits for $10m

Philippine-listed consumer tech firm Xurpas Inc invested $10 million for a 23.53 per cent ownership of Hong Kong-based Micro Benefits Limited as it aims to boost its HR (human resource) technology business.

Xurpas explained the latest investment is a strategic move that establishes China as a new market for their growing HR Benefits business, while simultaneously allowing them to offer new solutions to companies in Southeast Asia.

Incorporated in Hong Kong in April 13, 2010, Micro Benefits provides mobile HR solutions to Fortune 500 companies in China, through its wholly-owned subsidiary, Micro Benefits Financial Consulting (Su Zhou) Co Ltd.

Also read: PH-listed Xurpas invests in Singapore tech firm Einsights

Xurpas reported Micro Benefits’ proprietary “Company Link” platform is used by close to 700,000 of its clients’ employees, and by improving worker engagement, has been proven to reduce turnover by as much as 15 per cent. Its current list of clients firms are engaged in technology and consumer electronics, athletic footwear and sports equipment and other large companies with manufacturing facilities in China.

Based on the transaction, Xurpas’ subsidiary Storm Flex Systems Inc will enter into a cooperation agreement with Micro Benefits wherein it will join the Hong Kong-based entity through the use of Micro Benefits’ platform in China.

“This cooperation shall give employees the opportunity to convert their standard employee benefits to various products,” Xurpas said in its statement.

Meanwhile, Xurpas CEO Nix Nolledo said business expansion remains as one of their continuing priorities.

“Combining the platforms of Micro Benefits and Storm Flex Systems Inc creates a more compelling business solution fully intended to optimize their HR technology platforms which they could both offer to their clients,” Nolledo said. “This is a strategic move that establishes China as a new and hugely lucrative frontier for our growing enterprise business, while simultaneously allowing us to offer new solutions to companies here in Asia.”

Also read: Xurpas buys 51% stake in Globe Telecom’s tech solutions firm Yondu for $19.2m

Both Xurpas and Micro Benefits signed the subscription agreement on Tuesday, wherein the Philippine tech company will remit $1 million to Micro Benefits.

“Xurpas shall remit $4,000,000 million once Micro Benefits has fulfilled all of its deliverables. The final sum of $5,000,002.92 shall be paid by Xurpas at least 60 days from signing of the Subscription Agreement,” Xurpas added in its statement.

In securing the 23.53 per cent stake in Micro Benefits, Xurpas acquired 718,833 new Series C Preferred Shares in the company priced at $13.921124 per share.

Micro Benefits is now the ninth company that Xurpas has invested in since its IPO (initial public offering) debut at the Philippine Stock Exchange in December 2014 where it raised $30.4 million.

Xurpas’ last trading price remained at P16 since Tuesday.

Also read:

Xurpas acquires 70% of Seer Technologies

PH based Xurpas invests $1m in US tech startup Quick.ly

Xurpas creates first PH celebrity games firm Xeleb

PH co Xurpas acquires Altitude Games for $740k

PH startup Xurpas acquires second tech firm Storm Flex Sys for $4.3m

Xurpas invests $1.4m for 31.5% stake in Singapore’s MatchMe

Xurpas acquires Indonesian tech firm SDI

Xurpas, Holcim ink tech platform deal in PH

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).   

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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.