KUALA LUMPUR (Nov 2): Mitsui & Co Ltd is investing US$58 million (RM275.6 million) in Axiata Digital & Analytics Sdn Bhd (ADA) through ADA's holding company, Axiata Digital Services Sdn Bhd (ADS), which is in turn a wholly-owned subsidiary of Axiata Group Bhd.

Mitsui’s additional investment values ADA — Asia's largest independent data and AI company — at US$550 million and increases its stake in ADS from 3.29% to 20%, resulting in an effective 12.69% stake in ADA.

Notably, Mitsui, a Japanese conglomerate, has been working closely with ADS and ADA following its initial investment in 2019, and is now intensifying efforts to deliver data and AI solutions to partners and clients in the Asia-Pacific region. 

Vivek Sood, group chief executive officer and managing director of Axiata, said Mitsui’s substantial business capabilities, derived from a global portfolio, will further enhance ADA’s expertise in AI and data analytics . 

“This is a significant step towards generating greater, long-term value for our stakeholders and in driving continued growth within this space. Consequently, this will enable Axiata to seize additional opportunities in the digital business realm while sharpening our focus on our core pillars, thereby enabling sustainable growth across our geographic footprint.

We also acknowledge the contributions of other shareholders within ADA, such as Softbank and Sumitomo, who have been instrumental in providing support and fostering synergies as ADA pursues its journey towards achieving unicorn status in the AI, data analytics and digital transformation space, “he said in a statement.

Toru Matsui, representative director and senior executive managing officer at Mitsui & Co, said the additional investment in ADS will strengthen its customer relationship management strategy to develop digital marketing business clusters that contribute to its consumer-centric businesses.

“We look forward to collaborating closely with Axiata Group and ADS/ADA in order to contribute to the growth of ADA by accelerating the provision of its digital marketing solutions and data analysis services to our partners throughout the region."                                      

Srinivas Gattamneni, chief executive officer of ADA said: "Mitsui's strong endorsement highlights our extraordinary growth story. We are excited about the prospect of deepening our collaboration with Mitsui to empower their partners with cutting-edge data, AI and technology solutions. This partnership represents a significant step forward as we enter our next phase of growth, and we believe it will be an invaluable contributor to our journey."