GoLogiq, Inc, a US-based global provider of fintech and consumer data analytics, has signed a definitive agreement to acquire Symplefy, a provider of innovative payroll and end-to-end human resource (HR) management solutions based in Ho Chi Minh City, Vietnam. The all-stock transaction is valued at up to US$30 million, dependent on performance-based earnouts.
Following the close of the transaction, Symplefy’s co-founder and CEO, Stephen R. Jones, was appointed to the open position of CFO of GoLogiq. He will also continue to serve as CEO of Symplefy as a wholly owned subsidiary of GoLogiq.
Focused on businesses in the fast-growing economies of Southeast Asia, Symplefy is revolutionising the way corporations manage their workforce by simplifying HR processes and streamlining payroll processes through its innovative cloud-based software management tools, enhancing workforce efficiency and simplifying complex regulatory compliance.
Symplefy generates a significant amount of data, which when paired with GoLogiq’s existing Radix Big Data analytics platform, can provide key insights to enhance the client experience as well as provide cross-selling opportunities with GoLogiq’s other fintech platforms.
The opportunity
The global payroll and HR solutions and services market is projected to grow at a 8.4% CAGR to reach $50.4 billion by 2030. HR industry thought-leader, People Matters, points out Southeast Asia (SEA) countries represent a major global hub for manufacturing and trade, as well as one of the fastest-growing consumer markets in the world. While being the third-largest labour force, only behind China and India, SEA nations have outpaced the rest of the world in GDP growth per capita since the late 1970s.
To address the substantial market opportunity SEA represents, Symplefy has focused the initial launch of its fintech platform on the fast-growing economy of Vietnam. According to S&P Global, Vietnam is expected to experience rapid economic growth over the medium term as a key beneficiary of the shift in global manufacturing supply chains towards competitive SEA manufacturing hubs.
In light of the strong growth outlook, domestic and international businesses operating in Vietnam face numerous unique challenges related to payroll and human resources management regulations. Vietnamese labour laws that regulate minimum wage, overtime, social insurance contributions, and personal income tax can be intricate and subject to frequent changes.
These factors make it challenging for businesses of all sizes to stay compliant. SMBs especially face many hurdles with adopting modern payroll systems and automation, and traditional manual payroll processes are prone to errors and inefficiencies.
To address these regulatory challenges while staying competitive, businesses in Vietnam need to invest in robust payroll software, seek professional advice on compliance matters, stay updated on changing regulations, and implement effective HR practices to attract and retain skilled talent.
The solution
Symplefy solves these problems with a highly affordable and easy-to-implement cloud-based system for payroll and HR management. Its HR management system automates time-tracking and employee leave management while its payroll solution generates accurate payrolls and comprehensive reports.
The platform is currently in the early stages of rollout, initially deployed with several manufacturing businesses that have 50 to 2,500 employees. Under a new marketing campaign, Symplefy intends to launch the solution across multiple industries and geographies. Through its initiatives, Symplefy expects to ramp its customer acquisition to more than 2,000 corporate clients over the next 18 months.
“We believe that every business, regardless of its scale, wants and deserves access to top-tier software that optimizes their HR functions and simplifies their payroll management,” noted Jones. “Our user-friendly interface, robust features, and seamless integration capabilities ensure that our software is both powerful and accessible.”
“Symplefy’s technology and Southeast Asia focus complement GoLogiq with a solution that inherently acquires a significant amount of customer data, such as spending, banking habits and income,” added Jones. “We plan to apply GoLogiq’s existing Radix™ Big Data analytics platform to implement data analysis that can help enhance the customer experience as well as provide cross-selling opportunities with other GoLogiq fintech platforms.”
In addition to payroll and HR functions, the Symplefy platform is designed to support future opportunities for cross border transfer transactions, micro-lending, micro personal insurance, and more efficient payroll. This includes cross pollination opportunities with GoLogiq’s other fintech solutions, including credit cards, banking, and lending for underserved businesses.
According to the executive chairman of GoLogiq, Brent Suen, “This acquisition is the next of several in our pipeline that strengthen the power of our fintech platform and consumer data analytics technology. After our full launch into Vietnam, we plan to expand our footprint to other Southeast Asian markets facing similar challenges.”
