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.
