Diginex to acquire The Remedy Project for supply chain solutions

LONDON - Diginex Limited (NASDAQ:DGNX), a sustainability RegTech solutions provider, announced Friday it has signed a non-binding memorandum of understanding to acquire The Remedy Project Limited, a company specializing in human rights risk assessment and worker-centered remediation for global supply chains. The announcement comes as DGNX stock has delivered a remarkable 1,169% return over the past year, according to InvestingPro data.

The planned acquisition would combine Diginex’s AI-powered platforms with Remedy’s expertise in grievance mechanisms and forced labor remediation frameworks. The deal is expected to close within the next 45 days.

"The Remedy Project has been at the forefront of closing the gap between detection and actual remediation in global supply chains," said Miles Pelham, Chairman of Diginex, according to the press release.

Archana Kotecha, Founder and CEO of the Remedy Project, will join Diginex’s executive team to focus on remedy innovation and global relationships with corporations and governments.

The acquisition comes as new mandatory human rights and environmental due diligence laws, such as the Corporate Sustainability Due Diligence Directive, require companies to establish effective grievance mechanisms.

According to industry data cited in the announcement, the global market for supply chain sustainability software is projected to exceed $7 billion by 2029, growing from $1.7 billion in 2023 at a 29% CAGR. Diginex appears positioned to capitalize on this growth, with its own revenue increasing by 57% in the last twelve months to $2.04 million, though InvestingPro analysis indicates the company is currently trading above its Fair Value with a price-to-book ratio of 530.

Diginex also provided updates on other potential acquisitions. The company’s memorandum of understanding to acquire Resulticks Global Companies expired on October 31, though negotiations continue. Additionally, Diginex reported that due diligence and drafting of definitive agreements with Findings are ongoing, with that acquisition anticipated to close before year-end.

Diginex, headquartered in London, offers solutions that help companies collect and report sustainability data across various global frameworks.

In other recent news, Diginex Limited has been active with several strategic developments. The company announced a $1.7 million agreement with Indonesian tech firm PT. Inovasi Emran Ekadanta to provide ESG reporting capabilities to over 1,000 rural banks in Indonesia. This deal includes upfront fees and potential additional revenue through a share structure. Diginex also launched diginexGHG, an AI-powered carbon footprint solution certified according to the Greenhouse Gas Protocol, designed to help companies meet increasing emissions reporting requirements.

Additionally, Diginex has signed a memorandum of understanding to acquire The Remedy Project Limited, a firm specializing in human rights risk assessment, and Kindred OS, a company known for its Edge AI technology. These acquisitions aim to enhance Diginex’s capabilities in grievance mechanisms and AI integration within its product suite. The company also formed a strategic alliance with EVIDENT Group to integrate ESG data capabilities into tokenized assets, addressing the growing demand for verifiable sustainability metrics. These developments reflect Diginex’s commitment to expanding its offerings in sustainability and technology solutions.

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