AirAsia launches venture capital fund for SEA startups

Malaysian budget carrier AirAsia Group said on Monday it was launching a venture capital fund in the United States to invest in startups seeking to enter or expand in Southeast Asia (SEA).

The fund, called RedBeat Capital, will focus on post-seed-stage startups in travel and lifestyle, financial technology, artificial intelligence and cybersecurity.

AirAsia is partnering with San Francisco-based 500 Startups, which invests in young fast-growing companies.

RedBeat Capital will have a base in San Francisco and access to 500 Startups' deal flow, AirAsia said.

The airline group has initially allocated about $10 million, and the fund has already invested in a couple of companies, Aireen Omar, deputy chief executive, told Reuters.

AirAsia, which pioneered budget air travel in Asia, is broadening its reach to include a payments company, logistics, food and beverages brands and a loyalty programme.

A year ago, it placed these lifestyle assets including the BIG Loyalty scheme and a Wi-Fi service, in which it typically has stakes of 80-100 percent, under RedBeat Ventures.

The new fund RedBeat Capital will house smaller investments in startups of anything up to around 20 percent, Omar said.

Together, these could be listed separately in future. (Reuters)