CIMB's e-wallet venture with Ant Group to close fundraising by mid-year

KUALA LUMPUR: Malaysian bank CIMB Group's e-wallet unit is looking to close by around mid-year a fundraising in a joint venture with China's Ant Group, the unit's chief said in a press briefing on Monday.

Reuters reported in January that the joint venture, TNG Digital, was in advanced talks with investors to raise at least $150 million to fund expansion plans, at a valuation of more than $700 million.

Effendy Shahul Hamid, Group Chief Executive Officer of Touch 'n Go Sdn Bhd, told a virtual briefing that talks have been positive and the group has not finalised the amount to be raised.

"We haven't really figured out what levels we're going to stop the fundraising at, but we certainly have very positive traction from a combination of corporates and also private equity funds," he said.

Touch 'n Go Sdn Bhd owns 51% of TNG Digital while Ant Group holds 49%.

Touch 'n Go is also evaluating potential digital bank joint ventures, Effendy said.