Giant ride-hailing startup Pathao and fin-tech startup SureCash into a discussion about merging. If boards approve the idea, it will create an exciting company at the intersection of ride-sharing and fin-tech. The Daily Prothom Alo reports, citing unnamed sources.
Even though merging with each other, both the companies will operate separately.
According to the report, the companies think that a merged entity would take in a reliable position to attract investment and provide independently after the merge on a greater number of services to customers. Neither company confirmed the news.
Pathao is one of the fastest-growing tech startups in Asia. It is dedicated to the development of tangible solutions for minimizing the region’s biggest infrastructural problems. This platform enables entrepreneurs to seamlessly connect to consumers, accelerating the dream of a digital Bangladesh.
At present, the digital giant is leading the market in ride-sharing, food delivery, and e-commerce logistics services in Bangladesh. Identically, it aims to provide all sorts of services in one platform.
On the other hand, SureCash, the mobile financial platform of Progoti Systems Ltd. It started its commercial operations in 2015. It is an open payment network in partnership with 5 local banks. Which includes one of the largest state-owned banks and more than 1,000 payment partners.
It offers complete mobile payment services allowing customers to make cash-in/cash-out transactions. In addition to that, person-to-person (P2P) money transfers, inward international remittances, government payments, school and college fee payments, utility bill payments and payments for goods and services.
Now, Let’s wait and watch:
The following discussion is still at the beginning level. There are a number of stakeholders involved in the project. In addition to that, Pathao and SureCash both have multiple investors. Strategically a merger between these two companies makes sense as far as the ambition of both companies goes. Both boards are likely to approve.
Now the major concerns are:
- Who would lead the new entity to be formed?
- On the same vein, how regulators going to respond is also an important aspect?