Axiata Group is in discussions with a prospective new shareholder for its fintech arm, Boost Holdings, as part of efforts to strengthen its funding capabilities, The Edge reports.
The investment remains subject to regulatory approval, and details of the new shareholder have not been disclosed.
Group CEO and Managing Director Vivek Sood stated during an earnings briefing that Axiata expects to finalise the deal by the second quarter of 2025.
According to filings with the Companies Commission Malaysia (SSM), Axiata currently holds a 77.76% stake in Boost, while Great Eastern Holdings’ subsidiary, Great Eastern Digital, owns 19.89%, and Mitsui & Co holds 2.33%.
Great Eastern’s shareholding declined from 21.875% in September 2023 following an increase in Boost’s issued and paid-up share capital, which stood at RM1.74 billion and RM1.59 billion, respectively.
Boost operates across multiple fintech segments, including its core digital payments app, micro-financing and micro-insurance provider Aspirasi, regional carrier billing player Apigate, and Trust Axiata Digital, a joint venture in Bangladesh.
It also owns 60% of Boost Bank, a digital bank launched in partnership with RHB Bank, which began operations in June 2024.
For the financial year ended 31 December 2024 (FY2024), Boost narrowed its net loss to RM165.99 million from RM179.24 million in the previous year, while revenue edged up 2.5% to RM155.82 million.
Axiata attributed RM69.2 million of Boost’s losses to startup costs associated with Boost Bank, while non-bank losses improved to RM96.8 million.
Featured image credit: Edited from Freepik
