MCIS Insurance Acquires Stake In Merchantrade

MCIS Insurance Berhad has taken up a 4.99% stake in Merchantrade Asia Sdn Bhd, through the acquisition of new ordinary shares of an undisclosed amount.

Both have been working on campaigns in the past including MCIS Life providing of insurance products for Merchantrade’s customers, according to the acquirer this working relationship has forged a business potential prompting for the acquisition.

The strategic acquisition is aimed to accelerate MCIS Life’s digital transformation journey and leverage Merchantrade’s digital capabilities, access to an extensive network of over 1,000 physical touchpoints, and their three million customers.

MCIS Life CEO and Managing Director Mr. Prasheem Seebran said Merchantrade is a fast-growing fin-tech company constantly at the forefront of digitisation and driving innovation in financial services thereby allowing the former to pivot on their expertise in pursuing the company’s ambition to be a digitally focused life insurer.

Mr. Ramasamy Veeran, Founder and Managing Director of Merchantrade said: “Having an established brand like MCIS Life with us resonates with our goals of expanding our insurance offerings as it allows us to better develop next-generation products and services that continue to add positive value to customers and communities around us as we make the future convenient, easier and more secure for generations to come.”

Here on both will be aggressive in rolling out innovative financial services and strengthen their comprehensive ecosystem of interconnected technologies, such as global remittance, payments, e-wallet solution, foreign currency exchange, micro-insurance, telehealth, micro-loans, telco services, and more.

Prasheem added that the company’s strategy is focused on enhancing customer experience through innovative product solutions and digitised service offerings. The synergies between the two companies will be further supported by Merchantrade’s technology solutions as well as its foray into the payment space.

“We aim to achieve our targets by rolling out more products to suit Merchantrade’s target market and this strategic alliance is expected to contribute over 25% of MCIS Life’s non-agency new business contributions by 2025.”

The acquisition forms a bold step forward, further strengthening the existing ties between both companies since 2019 and MCIS Life see tremendous value in Merchantrade’s mobile e-wallet application and nationwide on-ground touchpoints allowing access to the underserved communities.

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