Axiata Group Bhd and Malaysia Venture Capital Management Bhd (Mavcap) are in the midst of establishing a RM100 million venture capital fund to spur innovation and growth of Malaysia’s digital ecosystem, as well as nurture regional champions.
President and group chief executive officer Jamaludin Ibrahim said for this reason, Axiata is committing RM50 million to the fund and Mavcap RM20 million, with the balance to be raised from other principal investors.
“We are targeting to allocate up to 70% to Bumiputera companies and the rest to all Malaysians,” he told reporters after signing an agreement for the fund’s establishment here today.
The ceremony was witnessed by Prime Minister Najib Abdul Razak and Communications and Multimedia Minister Ahmad Shabery Cheek.
Mavcap was represented by its chief executive officer, Jamaludin Bujang.
Jamaludin (Axiata) said the fund aims to create five to 10 regional champions in digital services by 2020.
“Via this programme, we intend to nurture talent, enabling them to grow bigger and faster.
“This is very much in line with our goal of ‘Advancing Asia’ via connectivity, technology and talent.
“We also aim to make a real difference to people’s lives and help transform the economies of those countries in which we operate,” he added.
Meanwhile, Jamaludin (Mavcap) said for a company to be eligible for the fund, it must have a scaleable product and economical business plan.
For the Bumiputera category, a company must have at least 51% Bumiputera stakeholding.
He said the fund is targeted to be launched by year-end with a maximum funding of RM10 million and benefiting between 10 and 15 companies.