Raiz Invest continues expansion in Asia
Raiz Invest has announced the next step on its way to boost its presence in Southeast Asia by entering into a joint venture agreement with a subsidiary of a leading Malaysian investment group, Jewel Digital Ventures Sdn Bhd.
Under the terms of the JV, there would be a 70 per cent/30 per cent split between Raz and Jewel with Raiz providing primarily the technology while Jewel would help secure the required capital once the condition precedents were met, including a granting of a licence in Malaysia.
The deal would additionally outline how Raiz and PNB would partner in other Southeast Asia countries.
Jewel is wholly-owned by PNB Equity Resource Corporation (PERC),which in turn, is wholly owned by Permodalan Nasional Berhad (PNB), one of the largest fund management companies in Malaysia with assets under management of around A$103.9 billion across 13.8 million accounts.
It was set up by PNB to help spearhead its digital business strategy for the customers of Amanah Saham Nasional Berhad, PNB’s wholly-owned unit trust management firm.
According to Raiz’s chairman, Tony Fay, the partnership would benefit Raiz’ efforts to further expand across Southeast Asia thanks to PNB and its strategic holdings which already had a significant presence in the region.
“With a population of 33 million people, Malaysia represents an excellent opportunity for our business,” Fay said.
“With the JVA executed, the next step is to submit a formal application to the regulator for the license. Discussions with the regulator are progressing, and at this stage, subject to regulatory approval, it is anticipated the platform will go live towards the end of CY19 or early in the new year.”
By the end of last year, Raiz managed to secure an approval for a licence to distribute mutual funds in Indonesia and its Indonesian business was launched in March this year, with the application expected to be released later this year, the firm said.
AUTHOR
Oksana Patron
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