Green Packet Berhad announced today that it is acquiring technology firm Xendity which specializes in identity verification processes using e-KYC (electronic know your customer) technology.
KYC is an established concept in banking involving the mandatory process of identifying and verifying the identity of the client when opening an account and conducting other transactions.
e-KYC uses technologies such as document verification, facial recognition and biometrics and typically only requires users to do so from their smartphones or personal computers remotely. e-KYC is a crucial piece of the puzzle to Malaysia’s digital banking revolution and an industry-wide e-KYC regulation is anticipated to be issued soon.
Last month, Green Packet announced it had tied up with Tencent Cloud, to leverage on the latter’s facial recognition and machine learning capabilities to build a localised e-KYC solution.
Green Packet Group MD and CEO Puan Chan Cheong said,
“The acquisition of Xendity forms a key part of our go market strategy with a solid e-KYC solution”.
“We have followed Xendity’s story closely and have been impressed with their achievements in the digital identity landscape. Although they are a new start-up company of about 3 years, their track record, experience, and capabilities as a main solution provider in the regulated e-KYC and ID management space should be applauded.” he added.
Singapore headquartered Xendity has significant operations in Malaysia and is making inroads into Indonesia.
Xendity said that since 2018, it has participated in Bank Negara Malaysia’s e-KYC Financial Technology Regulatory Sandbox by working with seven leading banks in Malaysia. Subsequently, after meeting the Sandbox’s e-KYC process criteria from Bank Negara, these seven banks have begun to deploy Xendity solutions.
One of the founders of Xendity is fintech entrepreneur Sia Hui Yong, who also co-founded Tranglo, an international cross-border payments specialist. Sia was also a nominated finalist in the EY Entrepreneur of the Year 2016 for the technology category.
Green Packet is paying US$10mil for 100% of Xendity, with a mix of cash and shares and with performance-based tranches. Green Packet will initially pay US$1.5mil in cash and issue new ordinary shares worth US$4mil. Over the next two years, Green Packet will pay up to US$4.5mil via new shares and these payments will be based on Xendity meeting stipulated key performance targets.
Green Packet is acquiring Xendity from a group of investors led by Hui Yong who are the founding investors of Xendity, and Vincent Wong who is the founder and CEO of Xendity.
Hui Yong, the founding investor of Xendity said,
“We are very pleased to join hands with Green Packet to accelerate digital fintech adoption in ASEAN, particularly in this social distancing era. I’m very confident of our synergies will help to realize this vision together.”
