Malaysian telecom major Axiata, the parent of Sri Lanka’s Dialog Axiata, is set to launch a venture capital fund for Sri Lanka to stimulate the ecosystem around technology-based innovation and wealth creation in the country.
To this end, Axiata Digital, Axiata’s digital services arm, is planning to set up a US $ 15 million venture capital fund in Sri Lanka towards the end of this year.
According to an unnamed company executive quoted by DealStreetAsia, the fund could be launched in December 2017 but the exact size and the date of launch are yet to be finalized.
The fund will be similar to the one Axiata Digital launched in Cambodia early this year.
Axiata Digital makes investments directly or through its VC-style vehicle Axiata Digital Innovation Fund (ADIF), which was originally formed to fund local tech startups but has now branched out into investing in financial services, advertising/adtech, e-commerce and entertainment, DealStreatAsia said. In March this year ADIF has announced the US $ 5 million Smart Axiata Digital Innovation Fund, a minor venture capital fund for Cambodian companies.
The ticket sizes of the funds provided to Cambodian companies ranged from US $ 25,000 to US $ 500,000.
Dialog Axiata in Sri Lanka is seen diversifying its reach from the mobile telephony into financial technology, e-commerce and now into venture capital.
In September, Dialog Axiata PLC announced the acquisition of 80 percent stake in Colombo Trust Finance PLC, a small finance company for Rs.1.1 billion.