​​Mavcap expands opportunities for local, regional startups

• The two funds have a total target fund size of US$38.2 million
• Focus on AI, fintech, healthtech, greentech, industrialtech, IoT, edtech

Malaysia’s largest venture capital firm, Malaysia Venture Capital Management Berhad (Mavcap) has announced the launch of two new venture funds that will invest in tech startups in the country and Southeast Asia.

In a statement, the government-backed company said the two venture capital (VC) funds, Orbit Malaysia Fund I and the Ficus SEA Fund will focus on verticals such as artificial intelligence, fintech, healthtech, greentech, industrialtech, Internet of Things and edtech.

The two funds have a total target fund size of US$38.2 million (RM160 million) collectively, it said. 

Shahril Anas Hasan Aziz, Mavcap’s chief executive officer (CEO) said the new VC fund will further strengthen its aspiration to help local startups grow their businesses and excel, with a view towards becoming tech unicorns and tapping into regional growth opportunities.

“In addition to increasing the pool of capital available for startups, both local and regional, to scale up their businesses, our new VC funds also provide opportunities to draw upon our broad global network together with the new fund managers, as we strive to cultivate regional and global champions,” Shahril added.

The Orbit Malaysia Fund I will be managed by Jakarta-based Kejora Capital, with Sunway Group and MAVCAP as anchor investors, Mavcap said.

This marks the second collaboration between MAVCAP and Sunway Group, following the Malaysia SuperSeed Fund II in 2019. 

Orbit Malaysia Fund I director Raymond Hor said that this public-private collaboration between MAVCAP, Sunway Group and Kejora Capital will amplify their shared goal to champion the growth of local startups, leveraging the fast-growing development of the tech space in the region.  

Meanwhile, the Ficus SEA Fund is investing in highly promising local startups in logistictech and greentech, and is considering other potential areas including Islamic fintech, augmented reality and ESG solutions, it said.

The fund is also unique as the first of its kind in the region with Shariah-compliant investment structuring, it added.

Asyrul Ramali, CEO of Ficus Group Capital said, “With our investment focused on robust growth sectors, we foresee positive returns for investors in the years to come, particularly in the post-pandemic environment as the world forges ahead towards recovery.

To further spur Malaysia’s immense entrepreneurial talent, we look forward to providing guidance along with investments for promising startups to capture new opportunities and flourish, Asyrul added.

The two new VC Funds are the latest additions to MAVCAP’s 14 VC Funds at various investment stages, from Seed to Series C, such as 500 Durians, Axiata Digital Innovation Fund, Asia Greentech Fund and Meranti Asean Growth Fund.  

From these funds, 10 tech unicorns have emerged, including Malaysia’s very first, Carsome, while other startups coming from the funds are also transforming the normal brick-and-mortar business landscape.