Malaysian wealth management app secures 8-figure funding

Versa, a digital wealth management service, has secured an eight-figure funding round led by Hibiscus Fund, a VC fund managed by RHL Ventures and South Korean financial services conglomerate KB Investment.

The round was also backed by OSK Ventures, Singapore-based HPRY Ventures, and returning investor Affin Hwang Asset Management.

Versa’s mobile app helps users manage their finances and gain interest on their otherwise idle cash with a platform that offers returns similar to those from other low-risk deposit options and with the flexibility of a savings account.

The Malaysia-based fintech startup was established in 2020 and was one of the first recognized market operators to obtain approval to operate from Malaysia’s Securities Commission.

It is currently offering net returns of 3.2% per year for savings in its cash management service, Versa Cash. Versa’s investor and partner, Affin Hwang Asset Management, manages Versa Cash.

Versa is also close to hitting US$44.44 million in transactions, having doubled its transactions since the beginning of 2022. In June 2022, it also introduced Versa Invest, an investment fund managed by top global fund managers.

Versa CEO Teoh Wei-Xiang said the funding will help drive the company’s vision of empowering more people to achieve financial wellness goals and bridge the financial literacy gap in Malaysia.

Versa was also a recipient of the Cradle Fund Sdn Bhd (Cradle) CIP Ignite II grant for commercialisation, a conditional grant of up to 500,000 ringgit (US$111,000) for tech based start-ups.

See also: Pleasant surprise in Malaysia’s digibank race

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.5 ringgit