Malaysia Debt Ventures Berhad (MDV) and Kenanga Investment Bank announced the establishment of a Fintech Fund, with a target fund size of RM 300 million to support the growth of fintech and further develop the venture capital industry in Malaysia.

The fund will see MDV and Kenanga taking up the role of joint managers and co-investors on a pro-rata basis.

In the initial investment phase, both MDV and Kenanga will equally contribute RM 25 million each as seed capital towards the fund.

The fund will primarily be used to finance fintech companies at various stages of its lifecycle and up to its pre-initial public offering.

Kenanga said in a statement that the collaboration will draw on the strength and capabilities of each organisation in the areas of equity and debt financing of fintech companies, proven investment capabilities, as well as access to capital markets in providing a more comprehensive financing solutions.

MDV’s Chairman, Khairul Azwan Harun said that as the only financial institution in Malaysia offering venture debt financing as a complementary source of capital for technology startups, MDV is fully committed to continue developing the venture debt market in Malaysia.

“The government has also been very clear with its intention to develop a vibrant and sustainable VC industry in Malaysia. MDV’s strategic partnership with Kenanga is a step in the right direction as it would provide the necessary impetus towards supporting the government in achieving this objective.

 

We believe that this initiative will serve as a catalyst to promote private funding for venture debt as a long-term sustainable model and that it would be able to boost the growth of new and innovative technology startups, which is key to ensuring the success of Malaysia’s digital economy plan,”

said Khairul Azwan Harun, Chairman, MDV.

“MDV’s mission to catalyse growth of technology-driven enterprises is consistent with Kenanga’s own commitment to digitalisation and innovation, and we are pleased to join hands with MDV on this initiative to increase access to capital for the fintech startup sector in Malaysia.

 

As a home-grown financial brand ourselves, Kenanga is committed to empowering entrepreneurial talent and this fund will enable the unicorns of tomorrow to flourish so that tech is in the pole position to drive Malaysia’s post COVID recovery,”

said Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank.

Featured image credit: Edited from Unsplash