Lazada invests in Malaysia’s Touch ‘n Go eWallet as part of RM750m equity funding round

TNG Digital - the owner and operator of Malaysia’s largest e-wallet company, Touch ‘n Go eWallet - has raised RM750 million (S$233 million) from an equity funding round that counts e-commerce giant Lazada among the investors.

In a media release, TNG Digital said the latest funding round was a follow-on investment by TNG Digital’s current shareholder and parent company Touch ‘n Go. The exact amount invested by Lazada was not revealed.

TNG Digital is a joint venture company by Touch ‘n Go and Ant Group, an affiliate company of Alibaba Group that is also Lazada’s majority shareholder. The other shareholders of TNG Digital include AIA Group and US-based venture fund BowWave Capital. Touch ‘n Go eWallet is the largest e-wallet payment operator in Malaysia, with over 17.8 million registered users and 1.2 million merchant touchpoints.

With the latest round of funding in the bag, TNG Digital said it has raised more than RM1 billion over the last 18 months.

Effendy Shahul Hamid, the group chief executive officer of Touch ‘n Go Group, said the collaboration will bring next-level value propositions to users and merchant bases across the Lazada and Touch ‘n Go ecosystems.

“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,” he said.

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Lazada Malaysia CEO Alan Chan noted that the collaboration will “fortify the long-standing partnership” between Lazada and Touch ‘n Go eWallet and benefit Lazada users, including sellers that are mainly local small and medium-sized enterprises.