Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on June 10, 2016.

 

KUALA LUMPUR: Axiata Digital Services Sdn Bhd, a wholly-owned subsidiary of Axiata Group Bhd, has invested US$16 million (RM64.64 million) in Indian e-commerce company StoreKing, according to reports in the Indian press.

According to StoreKing’s website, the Bengaluru-based firm operates a revolutionary platform enabling small-town retailers to sell over 50,000 products to walk-in customers without having to invest in working capital stock.

The company leverages on the use of modern low-cost and low-complexity technology, kiosks equipped with low-cost television monitors and Android tablets, to provide a simple self-service shopping experience to small-town shoppers.

According to Forbes India, close to about 16,000 retailers are connected on the StoreKing platform across Gujarat, Maharashtra, Goa and the five southern states.

Forbes India has also reported that StoreKing chief executive officer (CEO) Sridhar Gundaiah is now looking at replicating the StoreKing model in Southeast Asia, and that is a key reason why Axiata Digital has invested in the company.

Axiata Digital CEO Mohd Khairil Abdullah has also been quoted by the publication as saying that StoreKing is pivotal in bringing consumers into the digital sphere.

“I am extremely pleased to bring StoreKing into the Axiata Digital Services’ portfolio of businesses and look forward to their further expansion across all of Axiata footprint,” he said.

Axiata established Axiata Digital in 2012 to capture the rapid growth in Internet-based businesses. Since then, Axiata Digital has built a portfolio of some 24 digital brands, servicing growing demands in mobile money, mobile advertising, e-commerce, entertainment and education.

India is not uncharted waters for the Axiata Group. The telecommunications group is also a shareholder of Indian telecommunications major Idea Cellular Ltd.

Axiata shares closed eight sen or 1.42% up at RM5.71 yesterday, with a market capitalisation of RM50.38 billion.

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