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Singapore’s private finance firm, MoneySmart, has firmly rejected a non-binding provide of roughly S$10.5 million (US$8 million) from MoneyHero Group to accumulate the corporate, The Enterprise Instances reported.

MoneyHero, recognized for its homegrown fintech platforms Seedly and SingSaver, made the unsolicited provide in August.

MoneySmart’s board of administrators unanimously determined that the strategy was “neither severe nor credible” and wouldn’t entertain it.

“The style through which the provide was made public, with no prior discussions with MoneySmart administration, is very uncommon and has not engendered MoneySmart’s confidence in, or openness to, such discussions,” the corporate was quoted as saying by the information portal.

MoneySmart, a private finance market owned by Catapult Ventures, made it clear that the proposed merger didn’t align with its strategic objectives and would fail to ship worth to its shareholders.

The corporate’s founder and chief govt, Vinod Nair, defined that whereas MoneySmart and MoneyHero function in the same area, they’re on diverging paths by way of technique, monetary sustainability, and outlook.

Vinod emphasised MoneySmart’s dedication to advancing its merchandise, companies, and innovation, being a trusted accomplice to prospects, and executing its development technique.

The corporate’s reported profitability in 2023 and constructive free money circulate reveal its sturdy monetary well being.

MoneyHero’s current challenges

The transfer by MoneyHero got here after the corporate, which operates on-line private finance platforms in Singapore, Hong Kong, the Philippines, and Taiwan, laid off 80 staff in July to chop prices and enhance profitability, in keeping with one other report by The Enterprise Instances.

This wasn’t the primary time the corporate downsized—the information portal reported that it performed two rounds of layoffs in 2022.

CEO Rohith Murthy, who took over in February, described these layoffs as needed steps to boost MoneyHero’s long-term monetary well being.

Regardless of these cuts, Murthy insisted that the corporate continues to be in development mode, pointing to its robust management staff, dominant market share, and entry to capital.

The layoffs, in keeping with him, had been about decreasing redundancy and enhancing platform effectivity.

MoneyHero’s troubles haven’t gone unnoticed. Since its debut on the Nasdaq in October 2023, the corporate’s share worth has taken a major hit, dropping about 52%.

The corporate additionally noticed the departure of Yeap Ming Feng, the previous Head of Seedly, who introduced his exit in July after seven and a half years with the corporate.

Regardless of the challenges, MoneyHero stays dedicated to its imaginative and prescient. Based on the corporate’s LinkedIn web page, the agency had 33 positions for rent, with eight jobs in Singapore on the time of reporting. Nevertheless, a fast test now exhibits that 27 positions are nonetheless obtainable on their LinkedIn web page, together with one in Singapore.

This implies that whereas MoneyHero is tightening its belt in some areas, it’s nonetheless investing in its future.

What’s subsequent for each corporations?

For now, MoneySmart appears decided to proceed by itself path, specializing in innovation and development.

In the meantime, MoneyHero seems to be navigating by means of a tough patch however stays targeted on strategic realignment and effectivity.

Because the fintech panorama in Singapore continues to evolve, will probably be fascinating to see how these two rivals form their futures—and whether or not one other acquisition try is likely to be on the horizon.