Touch ‘n Go Group announced today that TNG Digital Sdn Bhd that the latest equity funding round has resulted in a fresh injection of RM750-million ($168.3-million) into TNG Digital.
In a statement on Monday, TNG said the funding round was led by new investment in TNG Digital, the Lazada group, and a follow-on investment by TNG Digital’s current shareholder and parent company, Touch ‘n Go Sdn Bhd.
According to the company, the latest investment solidifies the collaboration between key segment leaders in e-commerce and digital financial services and payments. Additionally, Touch ‘n Go group CEO Effendy Shahul Hamid said this collaboration would bring next-level value propositions to users and merchant bases across the Lazada and Touch ‘n Go ecosystem.
A statement by Effendy today said, “The funding round also sets us up nicely for our next phase of growth. We will continue to expand in all areas of digital financial services and ensure that our user base is served in an innovative and inclusive manner.”
Meanwhile, Alan Chan – CEO of Lazada Malaysia, stated that he sees digital payment services as a critical bolt-on to bring the best customer experience to its online shopping platform.
He went on to state that “Lazada is fully committed to providing seamless customer journey, as well as being a catalyst to stimulate capacity building among our sellers, primarily local SME and MSME. Our long-standing partnership with Touch ‘n Go eWallet has served our customers well, allowing buyers to check out easily and quickly. Today’s announcement fortifies that partnership, and we are excited by the prospects it presents for both our companies.”
The latest funding round brought the total amount raised by TNG Digital in the last 18 months to over RM1-billion. Most notably, in August 2021, TNG Digital received around RM312-million of investment from AIA Malaysia and a US-based private equity firm BowWave Capital. According to a report by The Edge in April, the investment resulted in a 3.76% and 7.52% stake in TNG Digital for both companies, respectively.
TNG eWallet has been accepted as one of the payment methods in Lazada since 2019, showing the long-standing relationship between the company and the e-commerce platform.
Besides being an eWallet, TNG Digital is currently the primary payment channel for RFID payments for toll and petrol purchases. Recently, they have also introduced a new TNG Card with NFC, which allows seamless top-ups directly from the eWallet using an NFC-enabled smartphone.
The company is also looking to expand into the fintech game by introducing Go+ and GoInvest investment products and GoPinjam personal loans.