MUMBAI, India - PayMate India, a prominent B2B payments company, has announced an agreement to potentially acquire DigiAsia Bios Pte Ltd., a leading Fintech-as-a-Service provider based in Singapore. The proposed transaction values DigiAsia at US $400 million and includes PayMate's plan to invest an additional up to US $25 million in cash post-acquisition.
The acquisition is expected to broaden PayMate's market share in Indonesia and is a strategic move ahead of its planned public listing in 2025. Following the completion of joint due diligence, the right transaction structure, and necessary regulatory approvals, the companies anticipate finalizing the deal within 60 days.
PayMate, which processed USD 10.5 billion in transactions in FY24 and serves over 522,000 customers globally, aims to enhance its digital B2B payment solutions through this acquisition. DigiAsia, currently a fully owned subsidiary of DigiAsia Corporation (NASDAQ: FAAS), offers a suite of embedded finance solutions that cater to the financial inclusion of underbanked merchants and consumers in emerging markets.
The press release indicates that the combined entity will proceed with proceedings to list in India post-closing of the proposed transaction, marking a significant step in PayMate's growth strategy. The information provided is based on a press release statement and presents the proposed acquisition as a key development in the fintech industry.
In other recent news, DIGIASIA Corp. has secured an initial allocation of 5,120 NVIDIA (NASDAQ:NVDA) H200 GPUs, a move that will bolster its AI fintech solutions. The company's first NVIDIA-powered solution is expected to be deployed by the end of 2024. Operating through its UAE subsidiary Digi Tech Limited, DIGIASIA plans to base its AI initiatives in the Dubai International Financial Center, potentially accessing a global financial services market estimated between USD 200-300 billion annually.
The GPUs, valued over $400 million, are set to be deployed across Southeast Asia, India, and the Middle East, with an option for an additional 10,240 units. This integration with NVIDIA's technology is anticipated to enhance DIGIASIA's fintech infrastructure, boosting productivity and efficiency for enterprise clients. The company's CEO, Prashant Gokarn, and CFO, Subir Lohani, have expressed their strategy to deliver growth and attractive returns with the rollout of these new solutions. These developments represent the latest moves in DIGIASIA's ongoing efforts to innovate in the fintech sector.
InvestingPro Insights
The acquisition of DigiAsia by PayMate India is poised to create significant waves in the fintech sector, particularly with PayMate's goal to expand its footprint in the Indonesian market and its upcoming public listing. DigiAsia Corporation (NASDAQ: FAAS), the parent company of DigiAsia, has been a topic of interest for investors, especially considering its recent performance metrics.
InvestingPro data indicates that DigiAsia Corporation has a market capitalization of $68.42 million, which is a critical factor for investors assessing the company's size and market value. Despite facing challenges, as evidenced by a negative adjusted P/E ratio of -55.82 for the last twelve months as of Q2 2024, the company's stock has shown a strong return over the last month with a price total return of 20.62%. This could signal a potential turnaround or a positive market reaction to recent developments, such as the acquisition news.
However, investors should note that DigiAsia Corporation's stock has experienced a significant decline over the past year, with a year-to-date price total return of -89.55% and a one-year price total return of -89.41%. These figures highlight the stock's high volatility, which is further supported by an InvestingPro Tip that states the stock generally trades with high price volatility.
Another aspect to consider is the company's valuation metrics. With a Price/Book ratio of 9.58, the company is trading at a high Price/Book multiple, suggesting that the market values the company's assets at a premium. This could be due to the potential growth opportunities that investors see in the company's future, especially with the PayMate acquisition on the horizon.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which provide insights into the company's financial health and market performance. For instance, DigiAsia does not pay a dividend to shareholders, which may be relevant for income-focused investors. Moreover, the InvestingPro Fair Value is listed at $3.78 USD, which could indicate the stock's potential undervaluation at its previous close price of $1.17 USD.
Investors seeking to capitalize on the latest developments in the fintech space may find the full suite of InvestingPro Tips on DigiAsia Corporation invaluable. Currently, there are 10 additional tips listed on InvestingPro, providing a comprehensive view of the company's financial standing and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.