Malaysian eWallet Provider TNG Digital Looks To Raise $150 Million For Expansion

TNG Digital, the venture launched by China’s Ant Group and Malaysia’s Commerce International Merchant Bankers (CIMB), is in talks to raise $150 million to fund expansion efforts, Reuters reported on Thursday (Jan. 21), citing four sources.

“TNG wants to step up its presence in financial services. This is where the market growth is,” one of the sources told Reuters. The funding is anticipated to boost TNG Digital’s valuation to at least $700 million.

The new funding will reduce the shares owned by CIMB and Ant, but the two companies will remain the largest backers of TNG Digital, two sources told the news outlet. TNG Digital’s electronic wallet — Touch ‘n Go — is Malaysia’s biggest digital wallet, with over 15 million registered users.

Although the worldwide COVID-19 pandemic escalated demand for digital payments, Malaysia is among the more competitive locales, with almost 50 operators. TNG Digital is in talks with financial institutions and other potential backers, the sources said.

CIMB and its division Touch ‘n Go own 51 percent of TNG Digital; Ant Group holds 49 percent, the source said. TNG Digital has already received conditional approval to serve as a recognized market operator (RMO) by the Securities Commission of Malaysia (SC).

The European Commission said this week that it is working on a plan to speed up vaccinations and testing in an effort to reduce and eliminate coronavirus infection rates. The EC is concerned about a third wave of the virus, which could be “potentially harsher.”

The European Central Bank is concerned that financial institutions will face further pandemic-fueled economic fallout this year as struggling businesses go bankrupt. ECB officials fear that government stimulus measures have camouflaged the gravity of the crisis.