Malaysia’s Ekuinas picks 40% stake in Exabytes Capital Group

Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir speaks at DealStreetAsia's Asia PE-VC Summit 2018 in Singapore.

Malaysia’s government-linked private equity fund Ekuiti Nasional Bhd (Ekuinas) has acquired a 40 per cent stake in local web hosting and cloud service provider Exabytes Capital Group for RM44 million ($10.7 million), it said in an announcement on Monday.

Ekuinas has the option to increase its stake up to 54 per cent.

Launched in 2001, Exabytes serves more than 100,000 customers in Southeast Asia and claims to be on track to becoming one of the largest players in the region for web hosting and cloud services.

“We are broadening our footprint in the services industry. True to our mandate, we are investing in and nurturing high-potential local companies that are ready to scale and compete regionally, if not globally.

“Exabytes is a prime example of a company that has the platform to be a regional leader that can position Malaysia as a hub for business and client. Through Exabytes, Ekuinas will be able to capitalise on the booming internet economy globally, which is currently valued at $3.5 trillion,” said Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir.

He added that this is Ekuinas’ second investment in technology services and the firm is confident that Exabytes will continue its growth trajectory of nine per cent annually, driven by increasing internet penetration and digitalisation of businesses.

Exabyte claims to have nearly a 30 per cent share of the domestic market and will use the capital to expand across Southeast Asia. Last year, it made three acquisitions to boost its web hosting businesses.

We will be leveraging on our brand premium, especially in Indonesia to drive customer acquisition through marketing and upselling higher value services, as well as expanding our capabilities and offerings into cloud and digital marketing to further beef up our end-to-end web solutions,” said Exabytes founder Chan Kee Siak.

This January, Ekuinas launched its fourth fund, Ekuinas Direct (Tranche IV) Fund, at RM1 billion ($240 million) with an option to increase to RM1.5 billion ($360 million). The fund will continue to invest in Malaysia-based businesses, with an emphasis on core sectors such as education, oil and gas, fast-moving consumer goods (FMCG), retail and leisure, healthcare and services.

Ekuinas’ funds under management stand at about $990 million.

Also Read:

Malaysian PE firm Ekuinas launches fourth fund at $240m

Intense competition in PE space may lead to distortion of asset value: Ekuinas

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.