VentureTECH SBI Sdn Bhd and VentureTECH Sdn Bhd have invested RM7 million and RM3 million respectively in Bayo Pay (M) Sdn Bhd (Bayo Pay), a licensed Mastercard Non-Bank E-Money Issuer to assist the Company in growing its core business and further enhancing its B2B2X white label Digital Payment-as-a-Service solutions to support the growth of local financial technology (Fintech) startups in Malaysia.
This Series A fundraising round was led by VentureTECH SBI.
Bayo Pay focuses on offering integrated end-to-end digital payment solutions to SMEs and corporates with a growing and captive user base. Bayo Pay’s B2B2X business model allows its clients to access its proprietary technology to develop a scalable private label payment solution accessible via its white-label or embedded payment module.
This enables any Fintech startups or corporates to dive into digital financial services at a more efficient cost by accelerating their go-to-market strategy and alleviating regulatory, legal, and technical obstacles while providing flexibility, and ease of product customisation and integration, the company saif in a release today (June 2).
VentureTECH SBI Principal Mohd Jerry Tan said, “Our RM7 million investment will speed up Bayo Pay’s product development cycle through hiring additional talents and client acquisition. Bayo Pay’s various white label products and modular approach allow new solutions or financial products to be rapidly deployed on top of its core offerings, allowing Bayo Pay’s clients to focus on what truly matters, i.e., their products and marketing.”
Adding to this, VentureTECH CEO Ahmad Redzuan Sidek said, “The RM3 million investment is in line with VentureTECH’s mission to support local fintech talents and our impact investment philosophy that aims to generate positive socioeconomic benefits in line with the country’s vision of embracing IR4.0 towards creating a more equitable, inclusive, and sustainable growth.
“Bayo Pay’s dynamic and modular solutions grant fast deployment in terms of additional features such as security electronic ID module, customer engagement platform and corporate digital payment solutions. The additional features are important because through rapid deployment and various available options, Bayo Pay’s clients are able to customise and offer various products that are central to its strategic positioning.” said Ahmad Redzuan.
Supporting this Bayo Pay CEO Aznul Abdullah added the investments will be utilised to fund Bayo Pay’s expansion by onboarding new clients and promote its ancillary digital services. The investments will also go a long way in the operations of the Company and support the capital expenditure requirements as part of our forward strategies to expand client base, increase collaborative-based income and further deepen our focus in our niche verticals.
“We are thrilled to have both VentureTECH SBI and VentureTECH as our cornerstone institutional investors and we believe this investment validates our business roadmap, as we execute our strategies to leverage on the global surge in use of digital payments.”
This is a maiden investment for VentureTECH SBI, a joint-venture fund management company between VentureTECH and SBI Ventures Malaysia Sdn Bhd (a wholly-owned subsidiary of SBI Holdings, Inc Japan), that focuses on venture capital and private equity activities in the Southeast Asia region.
Meanwhile, this marks VentureTECH’s first investment in the Fintech market segments since its inception, and with the addition of Bayo Pay, VentureTECH has invested and committed to invest in 25 technology industry leaders in its targeted high-technology and emerging industries, with aggregate investee net worth surpassing the RM2 billion mark.
The co-investment agreement was signed yesterday by Mohd Jerry Tan, Ahmad Redzuan, and Fardan Majeed, Group Managing Director of Bayo Pay in VentureTECH’s office in Cyberjaya.
