Axiata Digital Innovation Fund (ADIF), an investment vehicle set up telecommunications firm Axiata and government-owned venture firm Malaysia Venture Capital Management (Mavcap) has backed six startups, Tech in Asia reported on Friday.
ADIF committed Rg 12.5m ($3m) in total, without disclosing the exact amount invested in each company. However, the fund revealed it expects to provide follow-on funding for each startup and eventually supply up to $1m for each.
The six Malaysia-based startups are virtual outsourcing tool Supahands, curated news app provider Spot News, cleaning professionals marketplace MaidEasy, courier services marketplace Easyparcel, Tripfez, a travel agency aimed at the Muslim community, and EasyUni, a tool for students and parents to connect with higher education institutions.
Supahands and Spot News received an undisclosed amount in additional capital from VC firm 500 Startups as part of the round. 500 Startups manages a $22m Southeast Asia fund backed by conglomerate Genting and TV shopping network operator GS Home Shopping.
ADIF is a $23m initiative that was launched in November 2014 as part of the government’s aim to boost the local technology sector. Axiata supplied $12m for the fund while Mavcap provided $5m, with the remaining cash raised from unnamed investors.
ADIF will eventually take an equity stake of 20% to 40% in each of the startups.
Jamaludin Bajung, CEO of Mavcap, said: “We chose them for their strategic fit with Axiata’s business model. Axiata is looking for opportunities to invest in companies that can be regional champions in their respective verticals.
“Axiata provides a ready market. It has a vast network of digital companies developed over the years [and] has access to a multitude of experts in digital services such as e-commerce, online-to-offline, internet of things, and other internet services, which the companies can leverage.
“We are already planning to bring the companies on a tour to explore business opportunities in the respective markets.”