Axiata Group Berhad’s fintech arm, Boost Holdings Sdn Bhd, is reportedly considering a capital raise to fund its expansion plans. According to sources familiar with the matter, the company is eyeing a funding round that could value it at over $1 billion.

Boost is one of the largest digital wallet providers in Malaysia, with over 10 million registered users. The company’s mobile app allows users to make payments, transfer money, and purchase goods and services from merchants that have partnered with Boost. It also offers various financial services, such as insurance and microloans.

The potential fundraising comes as Axiata seeks to boost its presence in the fintech space and tap into the growing digital payment market in Southeast Asia. Boost has been a key player in this space, with its user base growing rapidly in recent years. The company has also expanded its offerings to include new services and partnerships, such as its collaboration with Alipay to enable cross-border payments.

While Boost has not officially commented on the potential funding round, sources suggest that the company is exploring various options, including a private placement or an initial public offering (IPO). Boost is said to be working with advisers on the fundraising and has already received interest from potential investors.

Axiata, which owns a majority stake in Boost, has been actively investing in the fintech sector in recent years. The company has made several acquisitions and partnerships, including its joint venture with Telenor Group to form Axiata Digital Services. The group’s CEO, Jamaludin Ibrahim, has previously stated that Axiata sees fintech as a key growth area and intends to invest further in this space.

The potential fundraising for Boost comes as the fintech sector in Southeast Asia continues to attract significant investor interest. According to a report by Bain & Company, the region’s digital payments market is expected to triple in size by 2025, reaching a value of $1.5 trillion. This growth is driven by factors such as rising internet penetration, increasing smartphone adoption, and a shift away from cash-based transactions.

As Boost looks to capitalize on this growth, it will face competition from other players in the market, such as GrabPay and GoPay. However, Boost’s established user base and range of offerings could give it an advantage in the crowded fintech space.

In conclusion, Axiata’s fintech arm Boost Holdings is reportedly considering a capital raise to fund its expansion plans and tap into the growing digital payment market in Southeast Asia. The potential funding round could value the company at over $1 billion and could take the form of a private placement or an IPO. Axiata’s focus on the fintech sector and Boost’s established user base and range of offerings could position the company for success in the highly competitive Southeast Asian fintech market.