08/05/2023 (Malaysia) - Malaysian fintech company, Boost Holdings Sdn. Bhd., is reportedly considering a new funding round that could raise between US$50 million to US$100 million, according to anonymous sources familiar with the matter. Boost Holdings is a subsidiary of Axiata Group Bhd., Malaysia's largest wireless firm by revenue, and is working with a financial advisor on the potential fundraising.
If successful, the funding round could value Boost Holdings at several hundred million dollars, the sources said. The funds raised will be used to expand Boost Holdings' digital banking operations, which include an all-in-one app, merchant solutions, AI-based lending, and a cross-border payment platform.
The people familiar with the matter, who asked not to be identified due to the confidentiality of the information, said that Boost Holdings has become one of the leading fintech players in the region. Boost Holdings, together with RHB Bank Bhd., was one of the five consortiums that were granted digital bank licenses by Malaysia's central bank, Bank Negara Malaysia, last year.
Boost Holdings' success has also attracted investors. In 2020, it sold a 21.9% stake to Great Eastern Holdings for US$70 million, valuing the company at US$320 million. The company's aim is to create an ecosystem of digital financial services that cater to the evolving needs of consumers and businesses alike.
Boost Holdings' potential fundraising comes at a time when the fintech industry in Southeast Asia is booming, as consumers increasingly turn to digital financial services amid the pandemic. Boost Holdings is well-positioned to capitalize on this trend, with its comprehensive suite of digital financial services and strong track record in the market.