Japanese conglomerate Mitsui & Co invested US$58 million into Axiata research and AI unit Axiata Digital & Analytics (ADA), a move that will broaden Axiata's reach in the Asia Pacific to deliver AI and data products to enterprise clients.
The investment will be facilitated by ADA’s holding company Axiata Digital Services (ADS), and has established a watermark valuation of US$550 million for ADA, stated Axiata. Following the investment, Mitsui’s stake in ADS will increase from 3.29% to 20% and an affective 12.69% stake in ADA.
ADA has its footprint in 12 countries across Asia and aims to use its cash injection to broaden its business. ADA and ADS had worked with Mitsui since an initial investment from the Japanese firm in 2019, and now there is work underway to deliver data and AI solutions to clients in the APAC region.
Vivek Sood (pictured, left), Group Chief Executive Officer and Managing Director of Axiata said: “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."
Earlier this year Sinood said Axiata was exploring sales of certain units to reduce its debt pile.
