Axiata Digital Innovation Fund Announces First Six Investments of its RM100 million fund
KUALA LUMPUR, December 8, 2015 – Axiata Digital Innovation Fund (ADIF), the largest digital services corporate venture capital fund in Malaysia, today announced the first batch of investments of its RM100 million commitment. Six Malaysian-owned technology companies, Maideasy, Tripfez, Easyparcel, Easyuni, SPOT News and Supahands, will benefit from an investment of RM12.5 million to help expand their business and product reach into the regional digital services marketplace.
ADIF was established as a collaboration between Axiata Group Berhad (Axiata) and Malaysia Venture Capital Management Berhad (MAVCAP) in late 2014 in support of the Government’s objective to enhance the capabilities of local technology companies, especially Bumiputera businesses with proven merit-based performance. ADIF will help revenue-generating companies in the digital services space enhance their innovative products and grow their businesses through funding, know-how and market access.
During the announcement today, Idham Nawawi, Group Chief Corporate Officer, Axiata, said, “We are excited to kick start the investments of the Axiata Digital Innovation Fund with these six highly capable and innovative companies. Our aim is to further develop these locally successful Malaysian companies and help them evolve into regional champions within the digital service space.
“Axiata itself has been growing its digital services business significantly over the last few years. We are in the best position to enable these companies to grow faster and bigger by providing not only funding, but also industry expertise and market access to Axiata’s 260 million over customer base across Asia. In essence, this really ties back to Axiata’s broader purpose of Advancing Asia through connectivity, technology and talent.”
Encik Jamaludin Bujang, Chief Executive Officer, MAVCAP, commented, “As Malaysia’s leading venture capital firm, MAVCAP is committed to increasing availability of funding for innovative ICT companies. Via this partnership with ADIF, we are glad to be able to support these deserving local start-ups. Funds such as these will help foster innovation and ultimately contribute towards cultivating a vibrant and dynamic ecosystem for the venture capital industry.”
ADIF is managed by Intres Capital Partners, a subsidiary of MAVCAP, who ensures that ADIF’s portfolio companies also benefit from the partners’ extensive network and cumulative experience in venture investing.
Encik Kamarul Nizam Kassim, Partner at Intres Capital Partners, said, “We believe the initial six companies that we selected from hundreds of other prospects offer compelling and innovative services via web and mobile platforms. From a Muslim-friendly travel portal to a global higher education research platform, to an e-commerce fulfillment aggregator and virtual assistant service, these services are highly relevant in today’s fast-evolving market. As such, we are confident that these companies have strong growth prospects.”
“These businesses have demonstrated reasonable traction prior to our investment, and we believe our investment will assist them to scale up more rapidly. The funds provided by ADIF will mainly go towards customer acquisition activities and expansion into new markets,” added Encik Kamarul.
ADIF is dedicated to nurturing Malaysian companies in the digital services space that offer innovative value-adding products and services. Start-ups and entrepreneurs with sustainable, profitable businesses are encouraged to submit their applications.
By 2020, ADIF aims to fund and nurture a substantial number of Malaysian-owned digital services businesses and targets to build up to 5 regional champions.
Axiata is one of the largest Asian telecommunications companies. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore.
The Group’s mobile subsidiaries and associates operate under the brand name ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia, ‘Idea’ in India and ‘M1’ in Singapore.
The Group, including its subsidiaries and associates, has over 260 million mobile subscribers in Asia. The Group revenue for 2014 was RM18.7 billion. The Group provides employment to over 25,000 people across Asia. Axiata’s vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.
The Group has expanded its portfolio of business which now includes a communications infrastructure solutions and services company called “edotco” and a digital services company, Axiata Digital Services.
Axiata was awarded the Frost & Sullivan 2009, 2010, 2011, 2012, 2013 and 2014 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian markets.
Malaysia Venture Capital Management Berhad (MAVCAP) was established in 2001. Formed to realise the Government’s mission to support Malaysian-based information, communications and technology (ICT) companies as well as the growth of the venture capital (VC) industry, today MAVCAP is the country’s largest VC company with investments in the ICT sector and other high-growth industries.
MAVCAP is a company owned by the Minister of Finance Incorporated.
For more information, please contact:
Yasmin Kadir or Lilyza Joehai
acorn communications sdn bhd
Tel: (+603) 7958 8348