PETALING JAYA: Axiata Group Bhd’s digital services arm, Axiata Digital Services Sdn Bhd has announced a strategic minority investment by Mitsui & Co Ltd, which establishes a pre-money enterprise value of US$500 million (RM2.07 billion) for its core digital business.
Its core digital business includes Boost, an e-wallet service in Malaysia with a presence in Indonesia; independent digital agency, analytics.data.advertisings (ada); and global API platform provider, Apigate.
“Mitsui will become a strategic shareholder and business partner at Axiata Digital’s core business verticals. The funds raised will be earmarked to fuel the next phase of growth for Axiata Digital’s core businesses,” the group said in a statement.
Axiata Digital CEO Mohd Khairil Abdullah said that its shift towards the three vertical areas has seen a strong business growth last year.
“With the investment from a partner like Mitsui, we hope to further accelerate these businesses while still being focused on distinct financial innovations for consumers at the bottom of the pyramid,” it said.
Mitsui’s IT and communications business unit managing officer and COO Masahiro Moriyasu said Axiata Digital is a powerful digital platform engaged in digital financial services, API and digital marketing.
“As an expansion of our strategic partnership with Axiata, we are very excited about this investment in Axiata Digital which follows our earlier investment in Smart Axiata in Cambodia, the country’s largest mobile telecom operator,” he said.
Previously, the company announced that it has signed to transfer the rest of its portfolio asset, dubbed Digital Ventures to an international investment fund, Pegasus 7 Ventures Pte Ltd managed by Gordian Capital at a valuation of US$140 million (RM580 million).
Combined with Axiata Digital’s core asset, its entire portfolio is valued at US$640 million (RM2.65 billion).
Source: The Sun Daily