- GXS Bank scores S$229.5M boost.
- Losses widen despite revenue jump.
- FlexiLoan product shows promise, deposits soar.
Red ink party: BYOB (bring your own billions)
GXS Bank has received a substantial S$229.5 million capital injection from its backers, Singtel and Grab.
The lion’s share of this investment came from Grab, which was allotted 191.8 million shares at S$1 each.
Singtel took the remaining 37.7 million shares. This move is part of a planned share issuance announced in January, following Grab’s earlier S$145 million investment.
Despite the cash influx, GXS Bank’s latest financials reveal widening losses. The digital bank reported a loss of S$208.2 million for FY 2023, up from S$132.5 million the previous year.
However, it’s not all doom and gloom – full-year revenue jumped to S$16.1 million from S$5.1 million in FY 2022.
Flexing financial muscles
GXS Bank’s FlexiLoan product, aimed at gig workers and underserved customers, has shown promising traction. The bank disbursed over 100,000 loans in its first year.
Deposits across GXS and Malaysia GXBank soared to US$479 million by Q1 2023, a significant leap from US$36 million in Q1 2022.
Notably, more than 90% of GXBank’s depositors are Grab users, highlighting the synergy between the two companies.
To read the original article: https://www.techinasia.com/gxs-bank-receives-s2295m-capital-injection-backers
