Accrelist made further inroads into Fintech business through its investment in a blockchain service provider. The Catalist-listed firm entered into an agreement with Kohsson Capital, Chan Chee Seng, Joseph Christopher Koh, Boon Kiok (Gu Wenke) and Hong Qi Yu as well as a subscription agreement with AmazingTech to acquire an aggregate of 10 percent stake in the blockchain service provider for a total consideration of $1 million.
This is on top of earlier moves to enter the mobile payment market through its subsidiary WE9Pay whereby WE9Pay will ride on Wechat Pay’s mobile payment platform to provide a solution to Singapore’s aim to become a cashless society. In addition, Accrelist has also acquired Refresh Laser Clinic – a medical aesthetics chain – via its WE Crowdfunding platform.
The acquisition of AmazingTech will further enhance the blockchain capability of Accrelist’s FinTech portfolio, as the Asia Pacific Fintech market has the potential to reach US$72 billion by 2020 [Frost & Sullivan, 8 February 2018]. Moreover, the positive outlook is fuelled by growth in digital payments such as increasing adoption of cashless payments by small and medium-sized enterprises. There is also more widespread awareness of the viability of using Peer-to-Peer (P2P) financing as well as new methods of crowdfunding using Blockchain, which will lead to growth in the personal and business financing segment.
Commenting on the acquisition, Accrelist’s Executive Chairman and Chief Executive Officer, Terence Tea, explained, “We believe our investment in Amazingtech will provide us with a foothold in the growing demand for blockchain services. Amazingtech provides an array of services that help bridge the blockchain and the consumer, including offering support in the form of hardware, security, sustainability and incentive mechanism to its customers. We believe this proposed acquisition is a viable investment which will broaden Accrelist’s revenue stream.”