HSBC launches $107m fund targeting Malaysia's 'new economy' startups

HSBC launches $107m fund targeting Malaysia's 'new economy' startups

FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu/File Photo

HSBC Malaysia has launched a 500 million ringgit ($106.8 million) fund focused on tech-led businesses operating in Malaysia’s digital economy.

Dubbed the ‘HSBC New Economy Fund’, the bank said in a statement on Tuesday that the vehicle will support startups in the Series B stage and beyond. DealStreetAsia had reported on Sept. 1 that HSBC was looking to roll out new venture debt funds targeting the Australian and Malaysian markets.

HSBC Malaysia will also continue to offer working capital, treasury management and payments and cash management solutions to meet the needs of the businesses it lends to under this fund, at different stages of their lifecycle.

“Malaysia is putting itself at the forefront of ASEAN’s thriving startup ecosystem with an emphasis on developing the country as a hub for high-performing businesses in the region,” said Omar Siddiq, CEO, HSBC Malaysia.

“We fully expect new economy businesses to play a more significant role in driving Malaysia’s economic growth and prosperity over the coming years. The ‘HSBC New Economy Fund’, which is a first of its kind in Malaysia, is focused on providing these high-growth, innovative companies with access to funding solutions so that they can continue the next stage of their growth,” he explained.

Karel Doshi, Head of Commercial Banking, HSBC Malaysia added, “In addition to being a trusted advisor towards tech led businesses and emerging startups, we have an unrivalled international network and a specially trained team to deal with startups.”

London-based HSBC also recently launched a $3 billion lending fund focused on Hong Kong and mainland-China, which was also named “HSBC New Economy Fund”.

Amanda Murphy, HSBC’s head of commercial banking for South and Southeast Asia, recently told DealStreetAsia that the lender is aiming to launch a $250 million venture debt fund for Australia by Q4.

HSBC has been steadily deploying from a number of vehicles for the Asia Pacific region. It closed a $200 million Southeast Asia fund in November 2021, a $250 million India fund in June 2022, and more recently closed a $3 billion fund for Hong Kong and mainland China in May. Some of its Southeast Asian portfolio firms include Funding Societies, Carro, Atome Financial and NextGen Foods.

Edited by: Pramod Mathew

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