Great Eastern, the insurance arm of Singapore-headquartered banking firm OCBC, agreed to pay $70m for a 21.9% stake in Malaysia-based telecommunications firm Axiata’s newly formed financial technology subsidiary, Boost, yesterday.
Axiata Digital, the digital services subsidiary of Axiata, retains a majority stake in Boost. The transaction is set to close in the coming months, pending regulatory approval.
Boost operates a digital wallet app with more than 7.5 million users and 170,000 merchant payment touchpoints in Malaysia, also catering to more than 540,000 Indonesia-based vendors.
The spinoff also runs Axiata’s microloan service, Aspirasi, and Trust Axiata Digital, a joint venture formed with Bangladesh-based financial services firm Trust Bank. The funding will be used to accelerate its digital financial offerings in Bangladesh, Indonesia and Malaysia, according to a statement seen by Nikkei.
Jamaludin Ibrahim, Axiata’s president and chief executive, said: “The cash injection is a testament in boosting investor confidence through what has been described as the largest foreign investment in the Malaysian fintech sector.”
Great Eastern CEO Khor Hock-Seng added: “This strategic investment will enable Great Eastern to participate in Axiata’s growing fintech expansion plans in the region. Axiata’s focus on providing financial services for the underserved, unbanked and underinsured customer segment also resonates well with our business strategy.”
