Saturday 03 Jun 2023
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(April 27): A financial technology (fintech) unit of Axiata Group Bhd, Malaysia’s biggest wireless firm by revenue, is weighing raising US$50 million to US$100 million (RM222.98 million to RM445.95 million) in a new funding round, according to people with knowledge of the matter.

Boost Holdings Sdn Bhd is working with a financial adviser on the potential fundraising, which may give the start-up a valuation of several hundred million dollars, the people said, asking not to be identified as the information is private. The funding round would help finance the expansion of Boost’s digital banking operations, the people said.

A consortium of Boost and RHB Bank Bhd was among five groups that won digital bank licences from Malaysia’s central bank last year.

Deliberations are ongoing, and there is no guarantee Boost will proceed with the planned offering, the people said. Representatives of Axiata and Boost declined to comment. 

Boost is the regional fintech unit of Axiata, offering an all-in-one app, merchant solutions, artificial intelligence-based lending and a cross-border payment platform, according to its parent’s website. It serves millions of customers across seven countries in Southeast Asia, the site shows. 

Axiata sold a 21.9% stake in Boost to Great Eastern Holdings Ltd, the insurance arm of Singapore’s Oversea-Chinese Banking Corp (OCBC) for US$70 million in 2020, according to a joint statement. The investment valued Boost at US$320 million.

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