The fund seeks to invest between US$326,500 and US$1.3M each in early-stage startups in financial services, advertising/adtech, e-commerce and entertainment

Dialog Axiata, a leading telecom service provider in Sri Lanka and owned by Malaysia’s Axiata Digital, has launched a US$15 million fund for startups in the island nation.

The Digital Innovation Fund (DIF) aims to invest in seed- and early-stage startups in financial services, advertising/adtech, e-commerce and entertainment.

The DIF will invest between Rs. 50 million (about US$326,500) and Rs. 200 million (US$1.3 million) each in early-stage startups. About 20 per cent of the fund has been allocated to invest in seed-stage startups seeking investment below Rs. 40 million (about US$261,200).

Also Read: Dear Singapore govt, please remember the stragglers in the tech revolution

Axiata Digital makes investments directly or through its vehicle Axiata Digital Innovation Fund (ADIF).

The Lanka vehicle will be managed by BOV Capital, a Sri Lanka and Singapore-based venture capital firm.

Dialog Axiata Group CEO Supun Weerasinghe said: “Small, medium and large scale digital based service providers will be the focus of the Digital Innovation Fund, and we will be selecting potential candidates through a systematic evaluation process. Our ultimate goal is to develop the digital service ecosystem in Sri Lanka, and further enrich the lifestyle of people through digital services.” 

Rajan Anandan and Prajeeth Balasubramaniam, Partners at the Dialog Axiata Digital Innovation Fund, said: “The Digital Innovation Fund will provide the much needed risk capital and business building support to Sri Lanka’s digital startups. Our first fund BOV Capital I focused on B2B tech startups keen on expanding regionally, and DADIF will now look at digital ventures that are focusing on the domestic market.”

The post Malaysian telco Axiata launches US$15M startup fund for Sri Lanka appeared first on e27.