The Scotts Group cements its position in the
FinTech space with Exponent’s sale of Fintrax
- Marks its presence in every major tax refund transaction over the last two decades totalling €2.3 billion
- Spearheaded the globalisation of world’s leading tax refund player, Global Blue
- Applies its track record and expertise in transaction digitisation and payment solutions to opportunities in the financial technology and tourism spaces.
Singapore, 30 November 2015 – Singapore-based business innovation and investment specialist for a range of global businesses, notably in the global tourist Value Added Tax (“VAT”) and Goods and Services Tax (“GST”) refunding space, The Scotts Group (“Scotts” or “Group”) announced today its involvement as a seller in Exponent Private Equity’s (“Exponent”) €585 million sale of Fintrax Group (“Fintrax”), one of the world’s biggest providers of VAT refunds with operations in 31 countries. This latest transaction cements Scotts’ position in the finance technology (“FinTech”) arena and marks the Group’s presence in every major tax refund transaction over the last two decades totaling €2.3 billion.
As a pioneer of the GST tourist refund business in Singapore back in 1997, Scotts has left its indelible mark on the industry. Prior to the Group’s involvement in Fintrax, Scotts adopted a prime mover role at Switzerland-headquartered Global Blue, shaping the organisation into one of the world’s biggest and most trusted tax-free shopping networks spanning more than 40 countries across Asia, Europe and Latin America.
Mr. Asad Jumabhoy, Chief Executive Officer of The Scotts Group, commented, “In 2013, we had the privilege to be invited to participate in Exponent’s deal. Our core competencies lie in our strategic insight and operating expertise in shaping transformational growth for businesses, thereby creating value. Our successful track record reflects our first-mover position in the tax refund business and more importantly, the foresight to capitalise on the opportunity by going global. This not only empowers companies to take the technological leap forward but to unlock intrinsic value as well. We achieved this through the transaction with Global Blue and now Fintrax. Against this positive backdrop, we aim to harness our expertise to create new best practices and impart greater value for each organisation that we take ownership in.”
In pursuing the same vision to shape businesses towards their next level of growth, Scotts leveraged its industry expertise and successful track record by formulating strategies and laying an effective framework for Ireland-based Fintrax to grow its market share. In particular, Fintrax’s subsidiary, tax-free shopping company Premier Tax Free now operates in 31 countries providing various innovative tax refund services.
Mr. Jumabhoy added, “Embracing the digital world has enabled us to look beyond our current business offerings and investment portfolio. Innovation has spurred payment technology to evolve from conventional offline means to online channels. Building on our ideology of making tomorrow a part of today, we continue to seize opportunities within the dynamic FinTech space. As we go forward with new innovations to stay relevant, our priorities lie in driving value creation for both end-users and existing stakeholders.”
About The Scotts Group
The Scotts Group (“Scotts”) operates and invests in opportunities in a targeted range of financial technology, real estate and sports businesses driving transformational growth. Strategic insight and operating expertise is the cornerstone of the Scotts journey.
Scotts engages with innovation, invests and manages interesting spaces ranging from innovations in tourist VAT/GST refunding and related foreign exchange payment systems to rewards & loyalty programs. Its origins trace back to a hundred-year Singaporean family business in real estate and shipping. Within the context of Singapore, Scotts first introduced Asia Tax Free Shopping back in 1997 which combined with Europe Tax Free Shopping to form what is Global Blue today. This partnership developed the infrastructure for the Electronic Tourist Refund Scheme (“eTRS”) to replace the manual paper refund form system in 2012.
Scotts has keenly harnessed the opportunities from the unprecedented emergence of new digital technologies and globalisation and its impact on businesses by creating new best practices and leveraging technology into organisational transformation.
Playing a significant role in shaping businesses in finding their next level of growth by aligning strategy to vision, Scotts’ focuses on strengthening companies by understanding strategic options, developing resource strategies and guiding investment with financial road-mapping.
To determine success points for its businesses, Scotts follows a process that works at diagnosing business issues, unearthing insights and developing activities to provide meaningful perspectives. Part of planning the success journey also involves designing an exit strategy to crystallise value.
 This includes €35 million as deferred consideration, subject to the company’s performance.