XURPAS Inc. on Wednesday said it purchased a minority interest in Hong Kong-based Micro Benefits Ltd., a firm that provides mobile human resources (HR) solutions to Fortune 500 companies in China, through its wholly-owned subsidiary, Micro Benefits Financial Consulting (Su Zhou) Co. Ltd.
In a disclosure to the Philippine Stock Exchange, Xurpas said it acquired a 23.53 percent stake in Micro Benefits for $10 million.
Micro Benefits, through MB China, began its operations in 2013 focusing on using mobile technology in order to address the growing problem of worker turnover at large manufacturing facilities in China.
To date, the company’s proprietary platform called Company Link is being utilized by almost 700,000 of its clients’ employees and, by improving worker engagement, has been shown to reduce turnover by as much as 15 percent.
Micro Benefits’ clients include firms engaged in technology and consumer electronics, athletic footwear and sports equipment and other large companies with manufacturing facilities in China.
“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,” Nico Jose Nolledo, chief executive officer of Xurpas, said.
Last year, Xurpas acquired Storm Flex Systems Inc., which allows employees to exchange their standard employee benefits into a wide range of products and services such as gadgets, travel packages and insurance.
“Combining the platforms of Micro Benefits and Storm Flex creates a more compelling business solution fully intended to optimize their HR technology platforms which they could both offer to their clients,” Nolledo said.
Storm Flex’s clients include the Philippines’ leading local conglomerates, financial services firms, BPOs (business process outsourcing) and fast-moving consumer goods companies.
“The investment into Micro Benefits signified Xurpas’ entry in other parts of Asia, strategically allowing Storm Flex to broaden its market scope to China and potentially expand its product reach from 30,000 employees to Micro Benefits’ fast-growing employee network of over half a million users,” the company said.