Malaysia Debt Ventures, Kenanga Investment set up fintech fund targeting 300 mln ringgit

Malaysia Debt Ventures and Kenanga Investment Bank have started a fintech fund with a target size of 300 million ringgit ($73 mln).

The two companies will put in 25 million ringgit as seed capital in the initial investment phase, they said in a statement on Wednesday (March 10).

MDV and Kenanga will be joint managers and co-investors on a pro-rata basis.

The fund will target fintech companies pre-IPO.

MDV CEO Nizam Mohamed Nadzri said the fund will target fintechs that are scalable and have sustainable business models, whose benefits can be cascaded down to the community.

State-owned MDV extends project and financing facilities to high-potential tech and tech-based companies, particularly those that are unable to secure funding from commercial financial institutions. It has disbursed 12.71 billion ringgit ($3.09 bln) to 836 companies since 2002, according to its website.

Kenanga specialises in equity and futures broking, investment banking, treasury, corporate advisory, and wealth and investment management services. It posted profit after tax of 26.39 million ringgit in FY2019, up 121% from FY2018.

Both financial institutions provide Islamic finance facilities.

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