BigPay, the fintech unit of airasia Digital, has raised up to US$100 million in financing from SK Group, the third-largest conglomerate in South Korea by asset size.
This is the first time any portfolio company within airasia Digital has secured financing of this size.
BigPay said the funding from one of South Korea’s largest conglomerates and tech innovator “further strengthens Airasia’s digital endeavour as it accelerates the scope of growth for its digital businesses, including logistics and financial services.”
The funding comes a few weeks after BigPay announced its application for a digital banking license in Malaysia with a consortium of strategic partners that include Malaysian Industrial Development Finance Berhad (MIDF), Singapore-headquartered Ikhlas Capital and a foreign conglomerate with fintech expertise.
BigPay’s ambition is to become one of “the largest challenger banks in South-east Asia”, said Salim Dhanani.
“Our ethos has always been clear. We want to launch financial products that are not only simple and convenient but transparent and accessible to everyone. We are ready to embark on the next stage of our journey with SK Group and we will continue to provide fair financial services to communities across South-east Asia,” CEO & co-founder of BigPay Salim Dhanani said.
He added that the company’s ambition is to become one of “the largest challenger banks in South-east Asia”.
“Closing this financing round gives us the ability to build out our offerings, accelerate product development and scale. We are thrilled to have SK Group with us on this journey.”
AirAsia group chief executive officer Tony Fernandes said the financing is “a testament” to BigPay’s digital growth.
“SK Group is second to none when it comes to innovation and experience, so we truly believe they can share their expertise and know-how so that this investment can mark the beginning of a new exciting digital banking era.”
Commenting on the investment the chief representative of SK Malaysia, Jung Kyu Kim said the conglomerate has a keen interest in fintech and digital banking for a long time. “SK Group will be able to make a significant contribution to BigPay in both technical and consumer service aspects given our experience and resources.”
BigPay, founded in founded in 2017, is present in both Malaysia and Singapore. Its current offering includes a prepaid debit card that can be used anywhere Visa or Mastercard is accepted, local and international money transfers, micro-insurance, bill payments and a budgeting tool. In the coming months it will add new services including responsible credit and micro savings.
Salim said BigPay, having established itself in Malaysia as one of the leading providers of digital banking services, is looking to expand its product sets, along with growing the model to new markets in ASEAN.
BigPay has made its entry into Thailand following AirAsia’s acquisition of Indonesian unicorn Gojek’s Thai operations, and aims to go live in the first quarter of 2022.
AirAsia is growing its digital businesses, transforming to become more than an airline, to make up for the shortfall in revenue from air travel due to the ongoing travel restrictions that has seen most of its fleet grounded.
The AirAsia Group has also embarked on a number of fundraising initiatives. On August 5, it received US$56.83 million (RM239.98 million) from the merger between Fly Leasing Limited (Fly Leasing) and Carlyle Aviation Partners. “Our plan to raise up to RM2.5 billion through a combination of borrowing and equity raising is on track. This transaction delivers a welcome boost to our overall fundraising strategy,” said Fernandes.
• All images credit: AirAsia/BiPay
