Malaysian-listed automotive replacement-parts manufacturer New Hoong Fatt Holdings has committed up to 20 million ringgit ($4.9 million) to become the anchor investor in a 50 million ringgit ($12.2 million) debut venture fund being launched by entrepreneur and investor Sivapalan Vivekarajah and former pitchIN chief operating officer Xelia Tong.
Cypress Drive Ventures, the first fund managed by their firm Cypress Asia, will target Malaysian technology-driven businesses at the pre-Series A and Series A stages that are profitable or have a clear path to profitability, according to a report by The Edge Malaysia.
New Hoong Fatt will invest through its wholly-owned subsidiary Jhi Soon Manufacturing Industries, which will subscribe for up to 20 million Class A redeemable preference shares in Cypress Drive Ventures at 1 ringgit each, the company said in a Bursa Malaysia filing.
Cypress Asia is seeking the remaining 30 million ringgit from family offices and other investors.
The fund will invest 1-3 million ringgit each in five to seven companies initially, rising to 10–12 if it meets its fundraising target. It has a seven-year term, extendable by two years, and expects its first investment in Q1 2027.
Cypress Asia will pursue opportunities across sectors including electrical and electronics, automotive, digital health and agriculture. It will avoid highly regulated businesses, companies heavily reliant on state government contracts, pure software businesses and those predominantly focused on e-commerce.
The managers aim to back companies that can grow profitably and reach an IPO or acquisition with limited further fundraising. Ideally, portfolio companies would require no more than one or two additional funding rounds after Cypress Asia’s investment.
The fund will source deals through the founders’ networks, including ScaleUp Malaysia, the Soonicorn Collective and pitchIN, alongside equity crowdfunding platforms and other venture firms. Sivapalan and Tong previously worked together at ScaleUp Malaysia, where they invested in 38 companies.
New Hoong Fatt’s anchor commitment followed about two-and-a-half years of discussions as the group sought exposure to innovation and opportunities to diversify its income sources. Its commitment rose from an initial 10 million ringgit to 20 million ringgit.
Sivapalan brings nearly four decades of experience as an entrepreneur, coach and angel investor. Tong previously held investment roles at Malaysia Debt Ventures and Cradle Fund before joining ScaleUp Malaysia and pitchIN.
