Mavcap eyes e-commerce, clean-tech funds

The rm is exploring opportunities in funding e-commerce within South-East Asia


Malaysia Venture Capital Management Bhd (Mavcap) plans to introduce two more funds by year end for the e-commerce and clean technology (clean-tech) sectors with the combined size of over RM800 million.

Mavcap CEO Jamaludin Bujang said the ideal target size for the e-commerce fund would be around RM100 million, while the clean-tech fund would be between US$150 million (RM588 million) and US$200 million.

“Hopefully we can announce them by the end of the year as we are still at the stage of raising the funds; talking to the potential investors and working on the legal processes. It is too early to be specific,” he said at the venture capital conference by Mavcap & Partners entitled “Building Bridges between North-East and South-East Asia” in Kuala Lumpur yesterday.

According to the Canadian-based Smart Prosperity Institute report, the clean- tech industry is estimated to reach US$2.2 trillion by 2022 globally, with an investment opportunity of US$3.6 trillion by 2030.

Jamaludin said Mavcap is exploring opportunities in funding e-commerce within South-East Asia, while it remains open to international investors or limited partners outside the region.

“In securing the investors, we will talk to the familiar faces in the country such as the Employees Provident Fund, Retirement Fund Inc, Khazanah Nasional Bhd and other three to four bodies.

“But, we are open in going beyond as the fund has a mandate for South-East Asia, so we will still have to go out and invest outside of Malaysia,” he said.

In an earlier report, Jamaludin said search for potential limited partners for the possible clean-tech fund has gained interest from Chinese investors who are very responsive on the proposed fund.

Moving forward, he said the firm will include the index fund and sectors such as the financial technology as part of the firm’s list of funds.

“The e-commerce fund relatively requires cheaper start-ups capital if we look at the average capital expenditure of e-commerce companies nowadays.

“There are other emerging sectors as well. We would like to diversify our funds into the current demanding sectors,” he said.

Mavcap recently set up the Asean Green Technology Fund worth RM782 million through a collaboration with China Construction Bank Corp to finance emerging green innovation and technology projects in Malaysia and South-East Asia.

Jamaludin said at present, the firm has identified three projects which will be supported by the green-tech fund.

At present, Mavcap has established seven funds, namely the Axiata Digital Innovation Fund, ECM Straits Fund I, Gobi Fund III, 500 Durians, Superseed Fund, Meranti Asean Growth Fund and Asean Green Technology Fund.