Axiata Digital fintech arm Boost Holdings buys controlling stake in Indonesian entity

Axiata Digital fintech arm Boost Holdings buys controlling stake in Indonesian entity
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KUALA LUMPUR (May 24): Axiata Digital’s fintech arm Boost Holdings Sdn Bhd has acquired a 68.75% stake in Indonesian licensed entity PT Creative Mobile Adventure to expand its regional digital financial service offerings.

PT Creative Mobile Adventure operates a telco supply chain model financing business under the brand KIMO, with a limited number of peer-to-peer full digital financing licences issued by Indonesia’s financial services authority, Otoritas Jasa Keuangan.

“The acquisition of the peer-to-peer licensee that operates a lending platform in Indonesia is a key growth engine for Boost Holdings to widen its reach to underserved micro and small enterprises regionally,” Axiata Digital said in a statement today.

Boost Holdings chief executive officer (CEO) Sheyantha Abeykoon said the acquisition is part of the company’s regional digital financial service roll-out plans.

“KIMO shares our aspiration to support the growth of micro enterprises through simple and convenient solutions powered by technology.

“This significant milestone allows us to scale our operations regionally and rapidly through an established entity and access a larger ecosystem of merchants and retailers who are already familiar with micro-financing,” Sheyantha said.

He said Indonesia is an important market for Boost Holdings as it already had 550,000 merchants on the ground and disbursed more than 26,000 loans since 2019 via partner platforms.

Boost Holdings provides regional inclusive financial solutions for the unserved and underserved segments, underpinned by robust risk frameworks and financial strength, and this is done through more than 60 partner ecosystems.

Axiata Digital chief executive officer (CEO) and chairman of Boost Holdings Mohd Khairil Abdullah said many countries witnessed an accelerated digital transformation last year, resulting in digital financial services becoming a necessity rather than an option.

“Having built and scaled several digital financial service businesses since 2014, Axiata Digital is in the position to deliver real value by bringing innovative financial products to our customers, and this acquisition further strengthens our ambitions towards providing regional digital financial services,” he said.

With its depth of insights into financial and protection needs of the unserved and underserved segments, Boost Holdings disbursed over RM207 million via its micro-financing and micro-insurance service provider, Aspirasi, to benefit 9,176 unique micro enterprises last year alone.