Digi said it will not be investing in GrabGas
By Digital News Asia September 8, 2016
- Digi pulls out its investment in GrabGas on grounds of inconsistency in the disclosure of data
- The decision is a reflection of the principles Digi upholds and expects of its partners
MOBILE operator Digi.Com Bhd announced that it will not proceed with its investment in GrabGas, after a comprehensive review conducted on Tuesday (Sept 6).
"The company will not proceed with its investment in GrabGas on grounds of inconsistency in the disclosure of data," said Digi in a statement today.
"Transparency and integrity is fundamental to the way Digi does business, and the decision is a reflection of the same principles it upholds and expects of its partners."
About a month ago, Digi announced that it will be investing equity funding in three startups - namely GrabGas, Local Usher and Vase - that graduated from Digi Accelerate, at which point, the shareholder agreements were ongoing to assess their performance and ensure business practices adhered to company's standards for proper business conduct.
While Digi did not disclose how much it plans to invest in each of the three startups, the company said that it plans to invest up to RM100,000 in each startup for between 5% and 10% equity.
GrabGas is a web and smartphone-based on-demand cooking gas delivery service which addresses a gap in Malaysia. Launched in April 2016, it claims it has grown more than 12-fold wth its services currently covering Petaling Jaya, Puchong and Subang Jaya. GrabGas also claimed that it is averaging 65 orders a day.
However, the startup was in the limelight for the wrong reason recently, after its former chief technology officer Julian Ee blogged about how he got shortchanged by his partners.