MOG Digitech Holdings Limited Announces Strategic Subscription in KUN International Group Limited

Key Highlights of the Transaction

• Transaction Type: Discloseable transaction involving the subscription of preferred shares in KUN International Group Limited (“KUN”).
• Pre-Money Valuation: The investment is based on a pre-money valuation of US\$100 million for KUN, offered to all investors in this fundraising round.
• Valuation Methodology: Market approach (comparable company method) adopted, using EV-to-TPV (Enterprise Value to Total Payment Value) multiples of leading global payment processors and fintech companies.
• Comparable Companies: Visa Inc, Mastercard Inc, PayPal Holdings Inc, Coinbase Global Inc, Block Inc, with Marqeta Inc and Mogo Inc excluded for specific reasons.
• Key Metric: KUN’s TPV for the 9-month period ended 31 March 2025 was approximately US\$855.75 million. The adopted mean EV-to-TPV ratio is 0.0832x, resulting in an assessed EV of about US\$71.2 million. The pre-money valuation represents a premium of US\$28.8 million, but falls within the peer range.
• Completion: All conditions precedent were fulfilled and the subscription was completed on 5 August 2025.

Detailed Insights for Shareholders

Valuation and Rationale

The Board determined that the cost and income approaches were not suitable for KUN’s valuation, given its early-stage profile and lack of positive net profit or net asset value. Instead, the market approach was adopted, referencing actively traded payment and fintech companies with similar business models, publicly available audited financials, and regulated disclosures.

Notably, the inclusion of major global players (Visa, Mastercard, PayPal) as comparables was justified, as these companies have integrated stablecoin settlement and are focusing on B2B cross-border payments. Their inclusion results in a more conservative valuation, which is beneficial for MOG as an investor.

The EV-to-TPV multiples among the comparables ranged from 0.0445x (PayPal) to 0.1947x (Block), with KUN’s implied multiple at 0.1169x, well within the sector range. If the largest comparables were excluded, the peer average multiple would be higher, actually implying a premium for MOG’s investment price.

Strategic Importance and Business Synergy

• Enhancing Digital Payment Solutions: The investment allows MOG Digitech to collaborate with KUN to expand its digital payment business internationally, leveraging KUN’s stablecoin payment infrastructure and technology.
• Cooperation in Insurance and Cross-Border Payments: MOG will integrate KUN’s solutions into its own e-CNY payment platform, offering seamless insurance product selection, underwriting, and commission distribution using stablecoins for international clients and brokers.
• Regulatory Compliance: KUN holds a virtual asset service provider license in Poland (for EU operations), is applying for a digital payment token service license in Singapore, and has relevant licenses in Hong Kong, ensuring compliance in its target markets.

Shareholding Structure Post-Transaction

Following the completion, the shareholding structure of KUN is diversified, with key stakes held by KUN FinTech Limited (28.08%), KUN Asia Pacific Limited (29.48%), and KUN Research Co., Ltd. (6.84%). Other notable investors include BAI GmbH, BAI Capital Fund I, L.P., various U.S.- and BVI-based funds, and Zhongbao Digitech (HK) Limited (5.27%). All parties are confirmed as independent third parties.

Potential Price-Sensitive Information

• Strategic Investment and Partnership: The partnership with KUN represents a significant move for MOG Digitech to grow its international fintech footprint, especially in stablecoin-based cross-border payments and insurtech.
• Growth Momentum: KUN achieved hypergrowth in TPV (over 200x year-on-year growth as of March 2025). This, combined with regulatory compliance, positions both companies for substantial growth in new markets.
• Technology and Licensing: Full compliance with evolving stablecoin regulations in the EU, Singapore, and Hong Kong could mitigate operational risks and enhance investor confidence.
• Valuation Premium/Discount: The investment valuation is competitive when compared to sector peers and may imply future upside if KUN maintains its growth trajectory.

Conclusion

MOG Digitech Holdings Limited’s investment in KUN International Group Limited is a potentially price-sensitive development. The transaction provides exposure to the fast-growing stablecoin and cross-border payment sector, brings synergistic opportunities in insurtech, and is executed at a valuation supported by sector benchmarks. Investors should monitor MOG’s future disclosures on the partnership’s progress, regulatory developments, and financial impacts stemming from this strategic move.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information is based on company disclosures as of 18 March 2026, and future events or market developments may impact the conclusions herein.

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