Green Packet Berhad (“Green Packet” or “the Group”) is acquiring technology firm Xendity Pte Ltd (“Xendity”) which specialises 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.
The acquisition of Xendity will strengthen Green Packet’s digital identity verification services which is a fast-growing sector as more organizations move towards their digital transformations.
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 Chan Cheong said, “The acquisition of Xendity forms a key part of our go market strategy with a solid e-KYC solution”. Singapore headquartered Xendity has significant operations in Malaysia and is making inroads into Indonesia.
In 2018, CTOS, Malaysia’s leading credit reporting agency, together with Xendity as its technology partner and leading banks, participated in Bank Negara Malaysia’s (BNM) e-KYC Financial Technology Regulatory Sandbox.
Having met BNM’s Sandbox’s e-KYC eligibility criteria, CTOS and the banks have made preparations to meet the upcoming BNM E-KYC policy.
However, banks have not deployed this solution to a live service and are awaiting the final outcome of the regulations to be issued by BNM.
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 USD10mil for 100 percent of Xendity, with a mix of cash and shares and with performance-based tranches. Green Packet will initially pay USD1.5mil in cash and issue new ordinary shares worth USD4mil. Over the next two years, Green Packet will pay up to USD4.5mil 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.
Founded in 2017,Xendity’s team has more than a decade of experience in remittance, compliance, money transfer, global payout as well as providing a seamless experience for onboarding and authenticating customers.
Xendity’s solutions for frictionless payments and compliance monitoring has led to its current partnership with Malaysia’s leading Credit Reporting Agency (CRA) in Malaysia and the largest inter-bank switch operator in Indonesia with more than 80 bank members. Xendity has also partnered with one of China’s leading public cloud service providers.
With Xendity’s battle-tested solutions, Xendity and partners are able to provide the highest quality e-KYC accuracy and experience, thus reducing operational and compliance oversight for its customers.
The solutions are being deployed in various companies in banking, telecommunications and fintech service sectors in Malaysia. Green Packet’s Puan said this acquisition will reinforce Green Packet’s position as the preferred partner for digital financial solutions for various industries in Malaysia including telecommunications and banking.