Green Packet completes acquisition of eKYC firm Xendity

Green Packet group managing director and chief executive officer CC Puan: “With Xendity’s partners and strong business pipelines within Malaysia, Indonesia and Thailand, we project a 15% compounded annual growth rate (CAGR) with over RM100mil revenue over the next five years and a healthy profit margin."

PETALING JAYA: Green Packet Bhd has completed the acquisition process of the entire equity interest in Xendity Pte Ltd after securing the go-ahead from its shareholders.

The acquisition is strategic for Green Packet as Xendity’s e-Know Your Customer (e-KYC) software will complement Green Packet’s enterprise products and solutions.

This acquisition is expected to boost the revenue and earnings of Green Packet’s digital operations.

In a partnership with Malaysia’s leading credit reporting agency CTOS back in 2018, Xendity participated in Bank Negara’s e-KYC financial technology regulatory sandbox programme. It subsequently inked a deal to provide e-KYC solutions to both CTOS and non-CTOS customers.

“With Xendity’s partners and strong business pipelines within Malaysia, Indonesia and Thailand, we project a 15% compounded annual growth rate (CAGR) with over RM100mil revenue over the next five years and a healthy profit margin, ” said Green Packet group managing director and chief executive officer CC Puan in a statement.

An EGM on Monday saw the resolution for the allotment and issuance of the new ordinary shares in Green Packet being carried as part of the settlement for the purchase consideration of up to US$10mil (RM40.46mil).

Of this sum, US$1.5mil will be satisfied in cash while the remaining US$8.5mil will be satisfied via the consideration shares where 99.98% of shareholders voted in favour.

The consideration shares will be allotted and issued to the vendors of Xendity in three tranches over three financial years, based on specified performance targets.

In recent years, Green Packet has transformed into a technology company focused on digital solutions with five strategic business pillars to drive its business growth.

They are digital solutions for consumers and SMEs; digital platforms for enterprises, including cloud services and data centres; smart devices; smart city & urban tech for development of technology-enhanced property products and delivery of customised property technology solutions and strategic early and late-stage investment via its KipleX and Green Packet Capital entities.

Green Packet said Xendity will remain as an operating company under its digital platforms business unit.

“Green Packet’s digital platforms unit diversifies the company’s business into cloud computing, with the ability to offer end-to-end solutions across the entire cloud computing stack, from infrastructure to software.

“e-KYC services will be an important component of the cloud computing product offerings such as platform-as-a-solution (PaaS) as it allows users to digitally verify the identity of their customers and securely onboard them to conduct online transactions, among others.

“This online customer onboarding capabilities through the e-KYC software is not only essential in the banking and financial services sector, but also necessary for most businesses that require online customer identity verification, ” Green Packet said.

The adoption of e-KYC technology was in line with Bank Negara’s efforts to facilitate greater digital offerings of financial services which is expected to pave way for greater innovation in the financial sector, including end-to-end offering of digital financial services for customers.