Xurpas acquires stake in Chinese HR firm
Manila, Philippines – Listed technology firm Xurpas, Incorporated has extended its reach into China by acquiring a stake in Micro Benefits Limited (Micro Benefits), a Hong Kong-based company providing innovative mobile HR solutions to Fortune 500 companies in China,
Micro Benefits does so through its wholly-owned subsidiary, Micro Benefits Financial Consulting (Su Zhou) Co. Ltd (MB China).
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, March 9, Xurpas announced that it acquired a 23.53%-stake in Micro Benefits for $10 million (P469.5 million).
Micro Benefits, through MB China, began its operations in 2013, focusing on using mobile technology to address the growing problem of worker turnover at large manufacturing facilities in China.
The company’s proprietary “Company Link” platform is used by close to 700,000 employees of its clients, and has been proven to reduce turnover by as much as 15%.
Micro Benefits’ current roster of clients includes fortune 500 firms engaged in technology and consumer electronics, athletic footwear and sports equipment, and other large companies with manufacturing facilities in China.
This isn’t Xurpas’ first foray into HR benefits. Last year, Xurpas Incorporated acquired a controlling stake in Storm Flex Systems Incorporated, whose platform allows employees to exchange standard employee benefits into a wide range of products and services, ranging from gadgets, travel packages, and insurance.
Storm Flex Systems' current roster of clients includes the leading Philippine conglomerates, financial services firms, BPOs, and fast-moving consumer good companies.
Entry into China
The investment into Micro Benefits marks Xurpas Incorporated’s entry in other parts of Asia. Since going public in December 2014, the firm has made a string of investments in Indonesia, Singapore, and the US.
It also allows Storm Flex Systems Incorporated to broaden its market scope to China and potentially expand its product reach from 30,000 employees to Micro Benefits' employee network of over half a million users.
Xurpas' latest investment is aligned with its thrust of expanding across Asia and is intended to be highly complementary for both companies.
“Combining the platforms of Micro Benefits and Storm Flex Systems creates a more compelling business solution fully intended to optimize their HR technology platforms which they could both offer to their clients,” said Xurpas CEO Nix Nolledo.
“Expansion is one of our continuing priorities, and this is a strategic move that establishes China as a new and hugely lucrative frontier for our growing enterprise business, while simultaneously allowing us to offer new solutions to companies here in Asia,” Nolledo added. – Rappler.com
$1 = 46.94
Editor’s note: Nix Nolledo is a member of Rappler’s board
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