NewMargin Capital, a private equity firm listed on China’s New Third Board, has led a US$115 million series A round in TNG Fintech, a Hong Kong-based financial technology start-up developing a digital wallet platform.
KBR Capital Partners, which is jointly operated by Israeli-Chinese cross-border private equity firm Infinity Group, and Hong Kong’s asset management firm KBR Capital, as well as Taiwan’s venture studio Nogle Group, also participated in the round, according to a company announcement.
The round values the start-up at US$565 million post-money. TNG claims that the deal is the largest series A round raised by any start-up in Hong Kong and any financial technology company worldwide.
Founded in 2013, TNG operates a digital wallet platform that enables global money transfers, peer-to-peer transfers, foreign exchange transactions and bill payments. Last month, it formed a partnership with convenience store operator 7-11 in Hong Kong, allowing users to top-up or withdraw cash from their digital wallets at more than 900 stores in the city.
As of August 2017, TNG had over 600,000 app downloads and over US$80 million worth of monthly transactions conducted on its app, the company said.
The company has formed a Global E-Wallet Alliances with other fintech companies covering Hong Kong and 12 Asian countries, including India, Thailand, Vietnam and Bangladesh. It plans to launch e-wallet services in Singapore, the Philippines, Indonesia, Malaysia, as well as the U.K. TNG said its global footprint gives it an advantage over local players in Asia such as Indonesia’s Tcash Wallet and Singapore’s Dash,
TNG plans to use the latest proceeds to support its global expansion strategy, fund new acquisitions and invest in new technologies such as blockchain, artificial intelligence, chatbot and e-KYC platforms.
New Margin Capital is a Chinese private equity firm that has invested over US$1.7 billion in more than 160 companies in China. It has secured 40 exits via IPOs.