HRnetGroup acquires majority stake in local fintech Octomate

RECRUITMENT and consulting company HRnetGroup is acquiring a majority 51 per cent stake in fintech startup Octomate from both an independent seller and Octomate’s chief executive and co-founder Zoey Tong.  

HRnetGroup will acquire a total 49 per cent interest in the startup through a cash payment of S$650,000 to an unnamed independent seller. Another 2 per cent of the company will be sold to the group by Tong. 

The total consideration of the acquisition amounts to S$676,530.61. The group said it will announce the consideration paid to Tong once it enters into a sale and purchase agreement with her. 

Founded in 2019, Singapore-headquartered Octomate is a cloud-based workforce management software built on blockchain technology. Its solutions include the automation of salary and reimbursement of claims.

In an announcement on Monday (Oct 3), HRnetGroup said its acquisition of the startup will facilitate the integration of Octomate’s instant payment solution with its own Ease Works app, which allows contractor employees to be paid instantaneously upon approval of their timesheets.

HRnetGroup’s executive director and chief corporate officer Adeline Sim said the transaction will introduce a new benefit of earned wage access to contractors at “absolutely no cost to them”. 

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The acquisition is expected to complete by Oct 10. 

Going forward, the group intends to develop Octomate “further as an exciting product offering”. The startup will remain an independent brand of HRnetGroup. 

Shares of HRnetGroup were down 0.7 per cent or S$0.01 at S$0.74 as at 1.01 pm on Monday.