Malaysia's Ekuinas buys 40% stake in local cloud player

Ekuinas has an option to increase its position to 54%. The firm set up its fourth fund earlier this year with MYR1 billion mandated for next-generation companies that can contribute to Malaysia’s wider economic development. It described the deal as its second investment in technology services.

Launched in 2001, Exabytes provides end-to-end cloud-based web services to more than 100,000 customers across Southeast Asia, including individuals, small and medium-sized enterprises, listed companies, and government agencies. It claims to have a 30% market share in the web hosting segment, which is expected to grow regionally at 9% a year due to increasing internet penetration and business digitalization.

“We are broadening our footprint in the services industry. True to our mandate, we are investing in and nurturing high-potential local companies that are ready to scale and compete regionally, if not globally,” Syed Yasir Arafat Syed Abd Kadir, CEO of Ekuinas said in a statement. “Exabytes is a prime example of a company that has the platform to be a regional leader that can position Malaysia as a hub for business and talent.”

Malaysia’s private equity industry is regarded as heavily dependent on government support. However, local investors have expressed confidence in the government’s policy reform and anti-corruption efforts as well as a range of economic drivers including an improving talent pool and regional logistical advantages. Other local advantages include seamless access to the business infrastructure of Singapore and strong language skills.

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• Topics
• Southeast Asia
• Support services
• Technology
• Expansion
• Malaysia
• Ekuinas