Axiata Digital, the digital services arm of Axiata Group Berhad, announced a strategic investment of USD 70 million by Great Eastern to boost its digital financial services (DFS) business across the region. With the investment, Great Eastern takes a 21.875 percent stake in the holding company for Axiata Digital’s DFS business, with Axiata Digital Services holding the balance. The company, called Boost Holdings, will comprise of Boost, the e-wallet and lifestyle app; Boost Indonesia; the micro-financing and micro-insurance digital financing provider Aspirasi; Trust Axiata Digital, a joint venture with a local bank in Bangladesh, as well as Launchpad for bringing digital financial services to other Axiata markets.
The transaction is expected to be completed in the next few months, subject to relevant regulatory approvals.
Proceeds from the investment will fund expansion plans for Axiata Digital’s DFS business over the next year in Malaysia and the region, which includes securing Boost’s next level push to create its ecosystem of merchants and customers, enhancing Aspirasi’s credit scoring technology, and potentially housing the Digital Bank.
Earlier in 2020, Axiata Digital expressed interest in the digital banking licences to be offered by Bank Negara Malaysia and began work to prepare for an application.
