Malaysian VC firm MAVCAP launches tech-focused venture funds

Malaysia Venture Capital Management Bhd (MAVCAP), the largest venture capital firm in Malaysia, has announced the official launch of two VC funds that will invest in tech-focused startups in the country and around Southeast Asia.

The two new funds – Orbit Malaysia Fund I and Ficus SEA Fund – will have a combined target fund size of RM160 million ($38 million) and will provide equity funding to startups with strong growth potential in Malaysia and other Southeast Asian markets.

The funds will focus on verticals such as Artificial Intelligence, Fintech, Healthtech, Greentech, Industrialtech, Internet of Things, and Edtech, according to the announcement.

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

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

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 billion-ringgit-sized assets under management, 10 tech unicorns have emerged, including Malaysia’s very first, Carsome, a technology-disruptive trading platform for the regional automotive industry while other startups coming from the funds are also transforming the normal brick-and-mortar business landscape.

“In line with our mandate to spearhead the development of Malaysia’s VC ecosystem, the new VC Funds will further strengthen MAVCAP’s aspiration to help local startups grow their businesses and excel, with a view towards becoming tech unicorns and tapping into regional growth opportunities,” said MAVCAP CEO Shahril Anas Hasan Aziz