ID verification firm in shares-based link with Singaporean partner
Chester-based identity verification specialist GB Group is taking a stake in a Singaporean business.
It announced this morning that it is leading the $7m first close of a Series A investment into CredoLab, a developer of bank-grade digital scorecards headquartered in Singapore.
In an all-share transaction, GBG will purchase a minority stake in CredoLab for a total consideration of $3m.
This is in accordance with GBG’s ongoing cash management strategy.
Established in 2016, CredoLab develops Artificial Intelligence-driven bank grade digital scorecards for businesses that need to assess an applicant’s risk profile and make better credit decisions.
A closer collaboration with CredoLab will enhance GBG’s digital on-boarding solution and allow the company to reach new fintech and neobank market segments.
In exchange for GBG’s minority stake in CredoLab, GBG will issue to CredoLab 321,882 ordinary shares of 2.5 pence each in GBG.
It is expected that admission to AIM will become effective and that dealings on AIM will commence in the consideration shares on Friday, August 21.
GBG chief executive, Chris Clark, said: “GBG’s fraud and compliance solution allows financial institutions to onboard and transact with their customers quickly, safely, and securely.
“We have experienced first-hand CredoLab’s capabilities from our ongoing commercial partnership.
“The company’s AI-based proprietary technology will not only complement our existing offering but also provide critical behavioural risk reference data from good customers who are financially excluded.”
Peter Barcak, chief executive and co-founder of CredoLab, said: “Banks and lenders always grapple with finding data that allows them to assess customers’ affordability and overall creditworthiness.
“While GBG’s fraud solution flags suspicious loan and credit card applicants during the onboarding journey, CredoLab’s behavioural risk score and algorithm lowers false positives and false negatives on delinquent behaviours to discern the probability of a customer to repay.
“CredoLab will use the funds to consolidate its leadership in Southeast Asia and expand its presence in key markets across Asia, Latin America, Europe, and Africa.”
