Malaysia’s Axiata Digital sells venture portfolio for $140m to Singapore’s Pegasus

Axiata Digital, the digital services arm of Malaysia’s Axiata Group, agreed to sell its Digital Ventures portfolio to a Singapore-based investment fund Pegasus 7 Ventures at a total valuation of US$140 million.

Photo credit: Vincent Liew

The deal included ownership stakes in digital businesses such as India’s rural commerce platform StoreKing and microinsurance company BIMA, according to a statement.

The portfolio mainly includes companies focused on the needs of underserved consumers. It covers the micro-insurance, rural commerce, ecommerce, last-mile solutions for banks, and e-mobile virtual network operator (e-MVNO) segments.

Pegasus, which is managed by private investment company Gordian Capital, plans to drive the portfolio’s growth by scaling the companies and give them more access to global financial, strategic, and operational partners.

The portfolio will be under the leadership of Gautam Saxena, the former head of Asia Telecom and Media at Bank of America Merrill Lynch.

Axiata said that for now, it looks to continue its focus on digital financial services, digital advertising, and digital platform – its three core verticals.

Axiata Digital Innovation Fund, the technology venture fund formed by Axiata Group, participated earlier this year in a US$5.85 million series B funding round for Malaysian logistics startup TheLorry. It also led an almost US$1 million series A funding round for local ecommerce platform Signature Market.