The Bengaluru-based insurtech firm entered the coveted club with a valuation of $1.9 billion. Indian insurtech firm Digit Insurance on Friday, January 15, announced that it has entered the coveted unicorn club after raising US$18.5 million from existing investors. Valued at $1.9 billion, the [...]
SYNQA to use funds for enhancing and updating enterprise product line.
Thailand-based fintech startup SYNQA (formerly Omise Holdings) announced today that it has raised $80 Million in a Series C funding round led by Thailand’s fourth-largest lender by assets, SCB 10X Co., Ltd. (SCB 10X), and SPARX Group Co., Ltd. (through its Mirai Creation Fund II).
Other investors who participated in the would include Toyota Financial Services Corporation (TFS), Sumitomo Mitsui Banking Corporation(SMBC), SMBC Venture Capital (SMBCVC), Aioi Nissay Dowa Insurance Corporation (ADI) and other investors.
The startup plans to use the latest funds to provide enhanced enterprise solutions and products supporting the digital transformation of businesses, and seeks to deepen its footprint in cashless societies in Asia, the statement says.
According to Crunchbase data, the startup had raised a total of $20.4 million prior to this round, although the startup declined to reveal its total investment haul.
Founded in 2015 by serial entrepreneur Jun Hasegawa, SYNQA is the parent company of Omise, a payment gateway co-founded by Don Ezra Harinsut in 2014, and OMG Network, the value transfer network for ETH and ERC20 tokens. Harinsut currently serves as Omise’s CEO. SYNQA specializes in online payment, blockchain technology for fintech applications, and digital transformation.
In times of social distancing, fintech infrastructures such as payment gateways are key tools in performing day to day financial transactions in a fast, secure and convenient manner.
The startup was recently rechristened from Omise Holdings to SYNQA, which stands for synergy, synchronization, symbiosis, symmetry and quest, which defines what the company stands for.
The startup helped develop products like the Toyota Wallet App in November 2019. The startup also owns OmiseGo, a cryptocurrency that uses Ethereum’s blockchain technology, whose price soared 200% within 15 minutes in May and crashed instantly afterwards, and is ranked as the 40th cryptocurrency by market cap at the time of writing.
The OMG Network raised $25 million through an Initial Coin Offering in 2017.
“Despite these challenging times, I see a lot of opportunities in accelerating digital payments and digital transformation for enterprises,” said Hasegawa. “This funding will accelerate the development of quality products and services by our subsidiaries to better connect people, businesses and society.”
“I strongly believe technologies and innovation are crucial to building a more accessible financial infrastructure,” he added.
In a world post-COVID-19, SYNQA envisions a shift in preference towards digital payments over cash. According to a Nielsen research report, in Singapore, online sale of fast-moving consumer goods (FMCG) saw a 2% increase compared to 2019 due to COVID-19 measures.
Moreover, in Italy, one of the worst COVID-19 affected countries that experienced massive lockdowns, ecommerce transactions rose as much as 90% compared to 2019.
The company’s subsidiary, Omise, has been offering payment gateway solutions since 2013, providing thousands of merchants across Asia with the necessary tools to run their online businesses, accept payments and connect them with millions of customers across the globe. This current funding will allow Omise to expand their services and technology stack to enhance the value proposition for merchants and businesses in Asia.
The Series C funding will also serve to propel a new subsidiary founded by SYNQA to meet enterprise market demand for fintech transformation, the startup said.
“This strategic partnership further strengthens the relationship between our two organizations. We believe that together we will bring forward innovations and new services to help enterprises transform and thrive in the digital future,” said Dr. Arak Sutivong, CEO of SCB 10X.
SYNQA subsidiaries are exploring the use of technologies, such as open APIs and the OMG Network, a value transfer network on the Ethereum blockchain, to provide enhanced solutions to its partners’ clients.
According to a McKinsey report, the global payments industry grew by more than 7.83% in 2018. In the Asia-Pacific (APAC) region, electronic payment transactions have grown at a rate of more than 15% annually–more than 2.5 times the rate of the region’s GDP growth.
Compared to the Americas, Europe, and the Middle East, the APAC region continues to dominate global payments revenue. SYNQA believes it is in a unique position to lead Asia’s transition to a cashless society.
Header Image Courtesy of SYNQA