Axiata Digital Innovation Fund (ADIF), the largest digital services corporate venture capital fund in Malaysia, will invest RM12.5 million in six Malaysian-owned technology companies.
Axiata Group Bhd’s group chief corporate Officer, Mohamad Idham Nawawi, said the investments will help expand and evolve their businesses and products to become the regional champions within the digital services marketplace.
“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,” he said at a media briefing here today.
From the 160 companies screened, ADIF has picked Maideasy, Tripfez, Easyparcel, Easyuni, SPOT News and Supahands to receive the fund, he said.
“The firms are from travel, services, education, logistics and media sectors,” he said.
ADIF, launched in November 2014, is a collaboration between Axiata and Malaysia Venture Capital Management Bhd (MAVCAP), to support the government’s objective to enhance the capabilities of local technology companies.
The fund, managed by Intres Capital Partners Sdn Bhd, a subsidiary of MAVCAP, has a commitment of RM100 million. So far it has RM70 million and is still looking for potential investor/s to invest in the remainder.
Meanwhile, Kamarul Nizam Kassim, a partner in the Intres Capital Partner, said the fund will also monitor the companies’ performances for 12-18 months.
He said the first round of this investment was not the final one.
“It will depend on the companies’ progress and if there is a need for further investment, it may be done,” he said.
Kamarul Nizam said the fund will also help foster innovation and contribute towards cultivating a dynamic ecosystem for the venture capital industry.