Touch ‘n Go Group announced today that TNG Digital has raised RM750 million from its latest round of equity funding.
TNG Digital is the owner and operator of Touch ‘n Go eWallet, which Vulcan Post has written extensively about.
This funding round was led by a new investment by Lazada, and a follow-on investment by TNG Digital’s current shareholder and parent company, Touch ‘n Go Sdn. Bhd (Touch ‘n Go).
A background of TNG Digital and its funding
Formed in 2017, TNG Digital was created as a joint venture between CIMB Group’s Touch ‘n Go, and Ant Group’s Alipay.
According to Fintech News Malaysia’s findings of the company’s last provided figures (date unknown), the Touch ‘n Go eWallet had over 15 million users and over 300,000 merchants.
In 2021, TNG Digital was the first e-wallet to receive approval from the Securities Commission as a Recognised Market Operator (RMO).
This allowed the e-wallet to roll out their wealthtech offering GO+, which we’ve reviewed, managed by their partner Principal Asset Management.
The product reportedly saw over a million users within two months of launch, according to Fintech News Malaysia.
A year later, the company further diversified its suite of financial services by rolling out GOPinjam, a personal loan feature that we compared to credit cards. It also partnered with AIA Group to introduce a travel insurance offering.
It was during this time that AIA and Bow Wave Capital Management (a New York-based investment firm) took a stake in TNG Digital reportedly valued at RM3 billion.
The total funding raised during that round was US$75 million, stated CIMB Group CEO Dato’ Abdul Rahman Ahmad in a press conference.
This leads us to TNG Digital’s newest funding round that was announced today, the RM750 million from its latest round of equity funding by Lazada.
This round of funding brings the total amount raised by TNG Digital over the last 18 months to over RM1 billion, stated the press release.
As of now, TNG Digital’s shareholders include CIMB’s Touch ‘n Go Group, Ant Group, AIA Group, US-based venture fund BowWave Capital, and Lazada.
When did Lazada get involved?
Touch ‘n Go eWallet has been a payment option offered within Lazada since October 2019, alongside Boost Wallet, credit/debit cards, and online payments.
Together, they’ve run plenty of promotions encouraging users to choose Touch ‘n Go eWallet as their preferred payment option to snag freebies, exclusive discounts, and more.
Not much has been reported about Lazada’s involvement in TNG Digital for the most part.
However, it can be said that with Lazada now holding a stake in the Touch ‘n Go ecosystem, the latter can continue to expand its e-wallet in more areas of digital financial services, enhancing the customer experience for users and merchants.
- Read other articles we’ve written about Touch ‘n Go here.
Featured Image Credit: Effendy Shahul Hamid, Group Chief Executive Officer, Touch ‘n Go Group