Axiata Digital, the digital services arm of telecommunications giant Axiata Group Bhd, has entered into an agreement to sell its digital ventures portfolio to Singapore-based investment fund, Pegasus 7 Ventures Pte Ltd, at a valuation of US$140 million.
The deal included ownership stakes in digital businesses such as India’s largest rural commerce platform, StoreKing, and global micro-insurance company, BIMA.
Pegasus 7 Ventures, which is managed by private investment company Gordian Capital, plans to drive the portfolio’s growth by scaling the companies significantly and give them more access to global financial, strategic, and operational partners.
Axiata Digital, on the other hand, will continue to focus on its three core verticals — digital financial services (Boost), digital advertising (ada) and digital platform (Apigate).
Started in 2013, Axiata Digital’s aim is to help the telco business undergo digital transformation via investments in new age businesses. Since inception, the company has since built a portfolio of 30 companies through minority investments and venture builder models. Axiata Digital also has a seat on the board of Axiata Digital Innovation Fund (ADIF), technology venture fund formed by Axiata Group, which focuses on investing in tech startups. ADIF participated earlier this year in a US$5.85 million series B funding round for Malaysian logistics startup, TheLorry, as well as an almost US$1 million series A funding round for local ecommerce platform, Signature Market.