Axiata Digital, the digital services subsidiary of Malaysia-based telecommunications provider Axiata, today agreed to sell its venture capital portfolio, valued at $140m, to investment fund Pegasus 7 Ventures, DealStreetAsia reported.
The portfolio consists of 30 companies inluding India-based e-commerce platform StoreKing, US-based mobile network operator FreedomPop and Sweden-based insurance provider Bima.
Going forward, the portfolio will be overseen by Gautum Saxena, a former adviser at Axiata Digital and the founder of Singapore-based Pegasus 7, which is itself run by fund manager Gordian Capital.
Formed in 2013, Axiata Digital is tasked with helping its parent company tap into technologies that help the telecommunications group drive digital innovation.
The subsidiary also has a board seat at Axiata Digital Innovation Fund, an investment vehicle launched in 2014 in partnership with state-owned venture capital firm Malaysia Venture Capital Management to invest in startups led by Malay entrepreneurs.
Axiata Digital expects the sale of its corporate venturing portfolio will enable it to focus on its three core verticals: digital financial services, digital advertising and digital platforms.
Saxena said: “These companies are poised to scale significantly and create value for their stakeholders while continuing to make positive impacts in underserved communities.
“The addition of these assets to the Pegasus 7 portfolio is synergistic with our thematic focus and will serve as an enabler for our future growth path.”
Mohd Khairil Abdullah, chief executive of Axiata Digital, added: “The partners in Pegasus 7 understand our vision, our markets and our portfolio companies which we have built to focus on our ecosystem of telco and digital assets.
“We strongly believe this handover will ensure the assets continue to thrive through access to our customer base, joint marketing and other synergistic activities.”
