Temasek-backed ShopBack seeking US$150m for expansion, sources say

[SINGAPORE] ShopBack, an online shopping rewards app backed by Temasek Holdings, is in talks with potential investors to raise US$150 million to help finance its expansion, according to people with knowledge of the matter.

The Singapore-based startup is working with Morgan Stanley on the funding round, which is expected to value the company at about US$1 billion, the people said, asking not to be identified as the process is private.

Discussions are ongoing and the fundraising size could still change, one of the people said.

Representatives for ShopBack and Morgan Stanley declined to comment.

ShopBack, whose investors include SoftBank Ventures Asia and Rakuten Capital, offers cashback and other rewards for brands and retailers including Dyson, Lululemon and Foodpanda.

The platform has expanded to 10 markets across South-east Asia, Australia, South Korea and Taiwan, according to its website.

The company raised US$75 million in a funding round from investors including Temasek, Rakuten and EV Growth in 2020, and bought fintech startup Hoolah late last year to add "buy now, pay later" services.

Following the acquisition of Hoolah, ShopBack appointed Hamish Moline, former chief commercial officer of Australian fintech company Zip, as its managing director for financial services.

ShopBack is among a plethora of consumer startups raising funds to expand in South-east Asia's fast-growing technology industry.

The region's Internet economy is set to double to US$363 billion by 2025, research from Google, Temasek and Bain & Co shows. BLOOMBERG