ShopBack, the Rakuten-backed e-commerce loyalty platform, announced today it will acquire buy now, pay later startup Hoolah. Both companies are based in Singapore and operate in Southeast Asian markets. The deal was done in stock and cash, and terms were undisclosed.
After the merger closes, ShopBack will own all of Hoolah, but the BNPL service's brand, app and website will continue to operate as before, ShopBack founder and chief executive officer Henry Chan told TechCrunch. The merger means new features will be added to ShopBack’s platform, evolving it from a loyalty app for e-commerce purchases to enabling transactions with BNPL options.
ShopBack, which has raised about $126 million from investors like Rakuten, Temasek Holdings, EV Growth, EDBI and East Ventures, says it is now used by about 30 million shoppers across 8,000 merchants in nine Asia-Pacific markets.
Founded in 2018, Hoolah’s investors include iGlobe Partners, Accelerasia Ventures, Genting Ventures and Maximilian Bittner, the founder and former chief executive officer of Lazada Group. Its BNPL services give shoppers the option of paying for purchases in three interest-free installments. The company says it has been used by more than 250,000 shoppers and is available on 2,000 merchants in Singapore, Malaysia and Hong Kong.