Malaysia-headquartered Axiata Group Bhd announced on Thursday that Japan-based conglomerate Mitsui & Co., Ltd will invest $58 million in Axiata Digital & Analytics Sdn Bhd (ADA), facilitated through ADA’s holding company, Axiata Digital Services Sdn Bhd (ADS).
Following the investment, Mitsui’s stake in ADS will increase from 3.29 percent to 20 percent, resulting in an effective 12.69 percent stake in ADA.
On the strength of the investment, ADA – the largest independent data and AI company in the region, spanning 12 countries across Asia – is set to broaden its digital reach and reinforce its commitment to advancing digital and data transformation in the region.
Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata, said “Mitsui has a strong and proven track record of bolstering innovative businesses in the fields of AI, data analytics and digital transformation. We are confident that broadening our strategic partnership will further enhance ADA’s expertise in AI and data analytics with Mitsui’s substantial business capabilities derived from a global portfolio. This is a significant step towards generating greater, long-term value for our stakeholders and in driving continued growth within this space. Consequently, this will enable Axiata to seize additional opportunities in the digital business realm while sharpening our focus on our core pillars, thereby enabling sustainable growth across our geographic footprint. We also acknowledge the contributions of other shareholders within ADA, such as Softbank and Sumitomo, who have been instrumental in providing support and fostering synergies as ADA pursues its journey towards achieving unicorn status in the AI, data analytics and digital transformation space.
Toru Matsui, Representative Director, Senior Executive Managing Officer of Mitsui, said: “The IT & Communication Business Unit has been executing a customer relationship management strategy to develop digital marketing business clusters that contribute to our consumer-centric businesses and additional investment in ADS will strengthen this strategy in Asia. We look forward to collaborating closely with Axiata Group and ADS/ADA in order to contribute to the growth of ADA by accelerating the provision of its digital marketing solutions and data analysis services to our partners throughout the region.”
Srinivas Gattamneni, Chief Executive Officer of ADA, said “Mitsui’s strong endorsement highlights our extraordinary growth story. We are excited about the prospect of deepening our collaboration with Mitsui to empower their partners with cutting-edge data, AI, and technology solutions. This partnership represents a significant step forward as we enter our next phase of growth, and we believe it will be an invaluable contributor to our journey.”