BigPay bags US$100m funding to boost challenger bank position in SEA

share on

twitter /
facebook /
linkedin /
- email
- telegram
- whatsapp
- wechat
- pinterest
- line
- snapchat
- reddit

AirAsia’s e-wallet arm BigPay has secured approximately US$100 million in financing from South Korean conglomerate, SK Group. The company said that the funding will be used to further its mission to become the leading challenger bank in Southeast Asia, with plans to build out its offerings, accelerate product development and scale.

Founded in 2017, BigPay is present in both Malaysia and Singapore. Its current offering includes a prepaid debit card which can be used for spending anywhere Visa or Mastercard is accepted, local and international money transfers, micro-insurance, bill payments as well as for use as a budgeting tool. BigPay has launched a series of products for its users focused on long-term financial health and accessibility, from e-money and international money transfers to micro-insurance and budgeting, with the goal of being a one-stop solution for financial needs

According to the airline, this is the first time any portfolio company within airasia digital has secured financing of this size. The funding from one of South Korea’s largest conglomerates and tech innovator would enable the company to further strengthen airasia’s digital endeavour, as it accelerates the scope of growth for its digital businesses, including logistics and financial services. A+M has reached out to BigPay for additional comments.

Salim Dhanani, CEO and co-founder of BigPay said that the company’s ambition has always been to establish BigPay “as one of the largest challenger banks in Southeast Asia”, adding that the company wants to expand its product sets, along with growing the model to new markets. “Thailand and the wider Asean is next, but we’ll be launching key products before that, with fully digital personal loans, transactional lending and an offering for MSMEs,” said Salim.

AirAsia group CEO, Tony Fernandes said that SK Group’s investment into one of its portfolio companies is “a testament to its digital growth story”, adding that airasia can tap on SK’s expertise and know-how. “I am excited for this great partnership with SK Group and for their belief in BigPay’s mission to bring inclusivity to financial services,” said Fernandes.

Chief representative of SK Malaysia, Jung Kyu Kim said that the group has had “a keen interest in fintech and digital banking for a long time”. He also said that SK Group will be able to make a significant contribution to BigPay in both technical and consumer service aspects given its experience and resources.

The announcement comes a few weeks after BigPay announced its application for a digital banking licence in July as a consortium of strategic partners: Malaysian Industrial Development Finance, Ikhlas Capital and a foreign conglomerate with fintech expertise. The airline said that the move reiterated airasia’s commitment to build a connected financial future for Malaysian consumers and entrepreneurs.

“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 Southeast Asia,” says Salim.

In the same month, airasia Digital is also set to acquire Gojek's operations in Thailand. In what is described as a win-win deal to rev up the expansion of the airasia super app in ASEAN, the deal provides both parties with a strong foundation to explore additional opportunities for collaboration and synergies in ASEAN. At the same time, this enables Gojek to increase investments in Vietnam and Singapore.

Join our Digital Marketing Asia conference happening from 9 November 2021 - 25 November 2021 to learn about the upcoming trends and technologies in the world of digital. Check out the agenda here.