Singapore-based 8VI Holdings Limited announced it has commenced talks and entered into an agreement to acquire a 9.6 per cent stake in Taiwan-based fintech company, GUGU Fintech Inc.

Operating under the brand name VI, the company is set to make a capital injection of NTD 12 million (SGD 0.55 million) in cash to seal the acquisition and grow its provision of investment and financial education.

The acquisition will combine VI’s mission to help the average individual achieve sustainable wealth based on its beliefs in value investing with GUGU’s market information, stock analysis capabilities and young retail investor target audience.

Since its establishment in 2020, GUGU has aimed to help its customers invest efficiently and seamlessly, growing to over 100,000 users in two years.

The agreement, pending approval from the local Investment Commission under the Ministry of Economic Affairs, is expected to have a post-investment valuation of NTD 125 million (SGD 5.75 million) and will enable 8VI to expand its operations in Taiwan.

“GUGU is a growing brand in which we resonate with, especially in our overall mission of empowering everyone towards sustainable wealth,” Ken Chee, CEO of 8VI Holdings, said.

“GUGU users’ needs are similar to that of our own VI Community, and we believe this investment will allow us to leverage our strengths in realising a greater synergy for our business and communities.”