Three Malaysian entrepreneurs and business partners – Tan Sri Tony Fernandes, Datuk Kamarudin Meranun, and Lim Kian Onn – have teamed up to form Tune Labs, a Kuala Lumpur-based start-up incubator and accelerator programme to identify, mentor and fund entrepreneurs across the Asean region.
The trio, known as the Founders (who are also mentors), has provided RM5 million (US$1.4 million) for the incubator. There will be more funding when needed.
Fernandes and Kamarudin each own a 35% equity stake in Tune Labs, while Lim holds the remaining 30%.
All the partners are known for nuturing and bringing to market disruptive businesses such as AirAsia, Tune Hotels, Tune Insurance and Tune Money.
Tony Fernandes with Arun Verma (left) & Gareth Lim (right) who helm Tune Labs investment team.
Fernandes is co-founder and group CEO of AirAsia, and co-founder of the Tune Group of companies including Tune Hotels and AirAsia X; Kamarudin is co-founder of Tune Group, chairman of AirAsia Berhad, and group CEO of AirAsia X; Lim is founder of the Libra Capital Group, co-founder of the ECM Libra Group and a director of AirAsia X.
The investment team at Tune Labs is helmed by Arun Verma and Gareth Lim. Both are experienced members of the Tune Group and AirAsia with a track record in developing and delivering innovative new ventures.
The new venture will support aspiring entrepreneurs achieve their visions of creating market-leading and innovative businesses focusing on the travel payments and retail verticals through two programmes:
- Incubator programme: A 12-week start-up bootcamp conducted thrice yearly for applicants with unvalidated early-stage ideas. Successful applicants will be offered the opportunity to work closely with the Founders and their partners to develop and validate their ideas, and establish viable, commercial propositions with a view to showcasing their products at a demonstration day at the end of the programme.
- Accelerator programme: This takes validated ideas and business plans, which may also include graduates from the incubator programme, and expedites entry into the market through access to capital and partnerships sourced and introduced by the Founders.
Participants in the programmes will have access to partnerships by the Founders, and the established infrastructure and support system of the Tune Group. They will also be able to leverage in-house technical and software development capabilities for both programmes.
The programme will initially start with eight start-ups, with submissions to come in by May 2.
Fernandes said it was his personal goal to promote and grow the start-up scene in Asean.
Tony Fernandes wants to help grow the start-up scene in Asean.
“There is a lot of talent in the region which, to date, has lacked the access and opportunities that are readily available to budding entrepreneurs in the West. Through Tune Labs my partners and I seek to provide the guidance and mentorship that we found hard to come by in the early days of building AirAsia, and envisage a structured environment to encourage, validate and ultimately implement exciting new ideas that will hopefully revolutionise and change the way we go about our everyday lives.”
Added Kamarudin: “A key obstacle to many new businesses is the difficulty or inability to raise capital in order to access markets and achieve growth. As such, my partners and I are committed to seed, nurture and develop the initial opportunities that will be housed under the venture.”
Lim explained that Tune Labs’ objective is to aid aspiring entrepreneurs reduce the time and costs needed in bringing to market an innovative new product. “The ability to utilise the wider group’s assets, coupled with essentials like office space, finance and legal, will significantly reduce costs and improve management focus.”
Click here for more information on Tune Labs, and how to apply for entry into the programmes.
