Singapore’s personal finance company, MoneySmart, has firmly rejected a non-binding offer of approximately S$10.5 million (US$8 million) from MoneyHero Group to acquire the company, The Business Times reported.
MoneyHero, known for its homegrown fintech platforms Seedly and SingSaver, made the unsolicited offer in August.
MoneySmart’s board of directors unanimously decided that the approach was “neither serious nor credible” and would not entertain it.
“The manner in which the offer was made public, with no prior discussions with MoneySmart management, is highly unusual and has not engendered MoneySmart’s confidence in, or openness to, such discussions,” the company was quoted as saying by the news portal.
MoneySmart, a personal finance marketplace owned by Catapult Ventures, made it clear that the proposed merger did not align with its strategic goals and would fail to deliver value to its shareholders.
The company’s founder and chief executive, Vinod Nair, explained that while MoneySmart and MoneyHero operate in a similar space, they are on diverging paths in terms of strategy, financial sustainability, and outlook.
Vinod emphasised MoneySmart’s commitment to advancing its products, services, and innovation, being a trusted partner to customers, and executing its growth strategy.
The company’s reported profitability in 2023 and positive free cash flow demonstrate its robust financial health.
MoneyHero’s recent challenges
The move by MoneyHero came after the company, which operates online personal finance platforms in Singapore, Hong Kong, the Philippines, and Taiwan, laid off 80 employees in July to cut costs and improve profitability, according to another report by The Business Times.
This wasn’t the first time the company downsized—the news portal reported that it conducted two rounds of layoffs in 2022.
CEO Rohith Murthy, who took over in February, described these layoffs as necessary steps to enhance MoneyHero’s long-term financial health.
Despite these cuts, Murthy insisted that the company is still in growth mode, pointing to its strong leadership team, dominant market share, and access to capital.
The layoffs, according to him, were about reducing redundancy and enhancing platform efficiency.
MoneyHero’s troubles haven’t gone unnoticed. Since its debut on the Nasdaq in October 2023, the company’s share price has taken a significant hit, dropping about 52%.
The company also saw the departure of Yeap Ming Feng, the former Head of Seedly, who announced his exit in July after seven and a half years with the company.
Despite the challenges, MoneyHero remains committed to its vision. According to the company’s LinkedIn page, the firm had 33 positions for hire, with eight jobs in Singapore at the time of reporting. However, a quick check now shows that 27 positions are still available on their LinkedIn page, including one in Singapore.
This suggests that while MoneyHero is tightening its belt in some areas, it’s still investing in its future.
What’s next for both companies?
For now, MoneySmart seems determined to continue on its own path, focusing on innovation and growth.
Meanwhile, MoneyHero appears to be navigating through a rough patch but remains focused on strategic realignment and efficiency.
As the fintech landscape in Singapore continues to evolve, it will be interesting to see how these two competitors shape their futures—and whether another acquisition attempt might be on the horizon.
- Read other articles we’ve written about Singaporean startups here.
Featured Image Credit: Vinod Nair LinkedIn and Rohith Murthy LinkedIn
