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The fund aims at startups that have reached a Series B stage, showing consistent growth over the quarters and are looking to further tap into the digital economy. The sectors that the fund will focus on include financial technology, eCommerce, food and agritech, energy, healthcare, and green technology.
Karel Doshi, HSBC Malaysia’s head of commercial banking, stated that reaction towards the fund has been positive so far and that the bank has been gaining insight on how best to assist emerging startups in Malaysia. “Startups will have access to this fund through relationship managers that will be able to provide assistance and direction on where to go from here. They have been specially trained to work with emerging businesses,” she said.
In addition to the funding, HSBC Malaysia will continue offering working capital, treasury management, and payments and cash management solutions to meet the needs of these startups through different stages of their lifecycle.
Doshi further explained that this initiative is not solely focused on Malaysia but is aimed at supporting tech-led startups across South-East Asia and Asia as a whole. The group has invested $2 billion globally into its commercial banking to enhance digital capabilities while developing solutions for its customers.
This initiative aligns with HSBC’s broader strategy in supporting new economy businesses across various markets. The bank has established funds in several markets including a $200 million fund in Singapore, a $250 million fund in India, and is about to launch a $250 million fund in Australia.
Omar Siddiq, CEO of HSBC Malaysia, emphasized the importance of new economy businesses in driving Malaysia’s economic growth and prosperity in the coming years. He further noted that Malaysia is positioning itself at the forefront of ASEAN’s thriving startup ecosystem, aiming to develop the country as a hub for high-performing businesses in the region.
HSBC has been 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.
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