The company was acquired by circuit maker CPH

Singapore fintech startup oCap has been acquired by SGX Catalist-listed circuit maker CPH in a reverse takeover deal set at S$61,815,400 (US$45 million).

The acquisition was made through oCap’s parent company, Delphinium Capital PLC, who will receive 5,151,283,333 new ordinary shares at an issue price of S$0.012 per Consideration Share. This will give Delphinium an 80.34 per cent stake in CPH post-acquisition.

Delphinium, a wholly owned subsidiary of Swiss Life (Singapore) Pte. Ltd., is an Isle of Man investment company developing a portfolio of assets in the fintech and regulated financial services domain.

Launched in 2016, oCap offers small and medium enterprises (SMEs) alternative financing options through its tech platform. It incorporates AI, machine learning algorithms, as well as blockchain-powered smart contracts to automate and streamline the financing process.

This enables loans, payment receivables, merchant cash advance, trade finance and working capital to be disbursed instantly, with full transparency (given the blockchain component), giving SMEs instant access to liquidity.

The platform’s machine learning algorithms help to better structure repayment schemes for SMEs based on their historic transaction behaviour.

oCap leverages AI and anti-money laundering (AML) based risk assessment and management software (RAMS) to offer more personalised financing solutions. The company also works with payment facilitators, online trading platforms and other niche service providers to create tailor-made digital financing solutions for SMEs.

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To date, oCap has helped facilitate US$100 million in alternative loans to SMEs. The company is already profitable, generating US$1.54 million in profits after taxes in 2017.

CPH acquired oCap in part because it wanted to diversify from its core circuit board manufacturing business, which it described as “loss-making” due to “increasing operational and financial challenges” in the past years.

CPH also wants to use oCap as a springboard to “penetrate the fast-growing fintech industry”, as well as generate renewed investor interest in its shares and attract a wider range of investors.

“We are delighted to have found the right platform for us to accelerate our growth trajectory. Singapore’s vibrant fintech landscape and supportive regulatory framework provides us with a springboard into the region which will help us realise our ambition of becoming a leading player in Asia,” said Carlos Haeuser, CEO of oCap.

“Our proprietary products address the needs of a largely underserved market where traditional lending systems do not meet the working capital demands of SMEs. In the face of such opportunities, the ability to provide instant and barrier-free access to liquidity for SMEs with accommodative and flexible payment terms is key to our success,” he added.

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Image Credit: oCap

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