Najib launches Sri Lanka’s biggest digital VC fund

COLOMBO: Datuk Seri Najib Tun Razak (pic) has launched Sri Lanka’s biggest digital venture capital fund.

Known as the Dialog Axiata Digital Innovation Fund (DADIF), the US$15mil (RM61mil) fund sponsored by Malaysian-owned Dialog Axiata Plc will be used to invest in Sri Lankan digital startups.

“It will fund the expansion of game-changing, best-in-class digital businesses in Sri Lanka,” the Prime Minister said in his speech during his visit to Dialog Axiata’s office here on Tuesday.

Dialog Axiata, a subsidiary of Axiata Group Berhad, is Sri Lanka’s biggest telecommunications company.

Axiata Group Berhad group president and chief executive officer Tan Sri Jamaludin Ibrahim, in his speech, said that DADIF will be Sri Lanka’s biggest corporate digital venture capital fund.

“It will help Sri Lanka’s digital entrepreneurs expand their business,” he said.

Najib is on a three-day official visit to Sri Lanka which ends Tuesday.

The Sri Lankan fund is similar to the fund Axiata Group launched in Malaysia in November 2014, the Axiata Digital Innovation Fund (ADIF), with Malaysia Venture Capital Management Bhd (Mavcap).

At the time, Axiata contributed RM50mil and Mavcap pumped in an additional RM20mil to the fund that aims to build up the capabilities of local digital companies, especially bumiputra startups.

In May this year, the fund received a RM10mil investment from Johor Corp (JCorp) to further drive Malaysia’s digital industry.