TNG Digital bags RM750m in new funding led by Lazada

TNG Digital has raised RM750 million from its latest round of equity funding led by Lazada Group and Touch 'n Go. According to TNG Digital, this new investment solidifies the collaboration between key segment leaders, one in eCommerce and one in digital financial services and payments.

This round of funding brings the total amount raised by TNG Digital over the last 18 months to over RM 1 billion. In addition to Touch ‘n Go and Lazada, other shareholders of TNG Digital include Ant Group, insurers AIA Group and US-based venture fund BowWave Capital. A+M has reached out to TNG Digital and Lazada Malaysia for additional information on the funding.

Touch 'n Go Group's CEO, Effendy Shahul Hamid, said: "We feel this collaboration will bring next-level value propositions to users and merchant bases across the Lazada and Touch ‘n Go ecosystem."

He added that the funding round sets the company up nicely for its next phase of growth. It will also continue to expand in all areas of digital financial services and ensure that its user base is served in an innovative and inclusive manner.

Meanwhile, Lazada Malaysia's CEO, Alan Chan, said the company sees digital payment services as a critical bolt-on to bring the best customer experience on Lazada.

"Lazada is fully committed to providing a seamless customer journey, as well as being a catalyst to stimulate capacity building among our sellers, primarily local SMEs and MSMEs. Our long-standing partnership with Touch ‘n Go eWallet has served our customers well, allowing buyers to check out easily and quickly," he added. 

The Touch 'n Go eWallet has been offered as a payment option on Lazada Malaysia since 2019. Both parties also tied up in 2020 for a RM6 million #KitaBantuKita incentive programme to boost greater use and adoption of digital platforms and payments among consumers and businesses in Malaysia, especially SMEs. Touch 'n Go eWallet was first launched in 2018 after Touch 'n Go received approval from Bank Negara Malaysia to operate and offer mobile e-wallet services to Malaysians. Touch 'n Go is mainly owned by CIMB Group.

Separately, on the leadership front, TNG Digital saw a leadership shuffle in March this year when Ignatius Ong stepped down as CEO for personal reasons. He was replaced by then-COO Alan Ni.

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