Paramount invests RM10m in Commerce.Asia

Commerce.Asia creates strong business synergies and new revenue streams for both groups 

By SHAFIQQUL ALIFF 

PARAMOUNT Corp Bhd has invested RM10 million in Commerce DotAsia Ventures Sdn Bhd (Commerce.Asia) as part of strategic investments into the technology space. 

In a statement yesterday, Paramount stated Commerce.Asia is an all-in-one e-commerce ecosystem that provides one-stop, end-to-end e-commerce solutions for brands, businesses and small and medium enterprises (SMEs) in South-East Asia. 

The investment was made through its wholly-owned investment vehicle, Magna Intelligent Sdn Bhd, and Magna Intelligent’s 30%-owned associated company, Omegaxis Sdn Bhd, which owns Fundaztic. 

Fundaztic is one of the first peer-to-peer financing platforms in Malaysia licensed by the Securities Commission Malaysia which has disbursed close to RM150 million, supporting more than 2,350 micro and SMEs, since 2017.

Paramount’s Corporate Strategy and Investment head Tracy Gan stated the investment was in line with Paramount’s five-year (2020-2024) strategic plan to identify new sources of earnings, particularly in the digital space. 

Paramount is also the lead applicant of a consortium applying to Bank Negara Malaysia for a digital banking license. 

The central bank is offering up to five digital bank licenses which are expected to be announced this month. 

“The Covid-19 pandemic has shifted consumer behaviour and accelerated e-commerce adoption worldwide over the past two years. “As such, our investment in Commerce.Asia is timely given its end-to-end ecosystem, track record, and business model which has almost doubled in revenue since 2020 and turned profitable in 2021,” Gan stated in the release. 

She added Commerce.Asia manages all aspects of customers’ online businesses, from developing their online stores to managing product sales across multiple e-marketplaces, including warehousing, payment, delivery, marketing and order management. 

She stated the company currently has over 92,000 active sellers that use its various platforms, with a group gross merchandise volume of RM6.7 billion last year and a strategic investment in Commerce. Asia creates strong business synergies between Paramount and Commerce.Asia and new revenue streams for both groups. 

“The convergence of two fast-emerging trends — fintech and e-commerce — serves as the platform for Fundaztic to provide financing to Commerce.Asia’s network of merchants utilising advanced data analytics and insights. 

Moving forward, Paramount aims to further increase its footprint in the digital space and will continue to be on the lookout for opportunities to grow this segment, especially those that create synergy with our existing investments or businesses, Gan added.