Axiata

Digital

Axiata Digital’s mission remains to enhance Axiata’s core business revenue by creating new sources of value and contributing to the long-term upside creation through partnerships and acquisitions in the digital ecosystem.

Through Axiata Digital, we have expanded our portfolio of services to cater to online customers via connected devices and our digital strategy has managed to capture an increased share of customer wallet and reach beyond Axiata’s traditional mobile services of approximately 320 million mobile subscribers.

Axiata Digital is in a unique position to leverage on the Group’s strength as a leading regional telecommunications operator, by building on existing customer relationships within our eight mobile markets, which now includes Nepal through the acquisition of Ncell in 2016. It is also able to capitalise on the physical distribution networks of Axiata and partner stores in most of our markets of operation, allowing customers and digital businesses alike to have physical points of contact.

As the Group enters into its third phase of growth which focuses on being a New Generation Digital Champion, Axiata Digital supports Axiata’s growth agenda through the following value capturing initiatives:

  • Driving synergies across the portfolio of investee companies and related Operating Companies (OpCos) through the use of relevant services and joint marketing activities

  • Creating value by churn reduction, increased data usage and insights into user behavior that can be leveraged by mobile operations

  • Attracting new strategic and financial investors to contribute to the growth of the investee companies

The learnings, experience and data acquired from incubating and launching new businesses have assisted Axiata Digital in developing new business models to address prevailing market challenges of hypercompetition, disruptive technologies and new trends. As at end 2016, Axiata Digital has focused its investments in seven key business verticals namely Digital Advertising, Digital Marketplaces, Digital Financial Services, Digital Entertainment and Education, Internet of Things (IoT) and Over- The-Top (OTT) Enablement Platforms. We have 29 digital businesses across these verticals, with three subsidiaries and seven joint ventures, and serve 32 million customers.

Enabling and Investing in the Digital Ecosystem

In 2016, Axiata Digital made progress on its investments in FreedomPop and Adknowledge Asia as both concluded private placements from external investors. The Company also completed a strategic equity investment through StoreKing, an assisted e-commerce player based in India, in July 2016. Regional expansion plans are ongoing to roll out the StoreKing model in Axiata markets targeting rural segments. 2016 also marked the commencement of further fundraising exercises for Yonder, Adknowledge Asia, Wow.lk, elevenia and 11street.

Axiata Digital has also further increased its portfolio of services through the setup of mobile IoT Cloud, a cloud-based IoT platform to serve all IoT verticals across the Group's markets. Other launches include WSO2.Telco’s digital enablement hub to deliver the GSMA Mobile Connect mobile-based authentication solution to the six major telcos in India which include Aircel, Bharti Airtel, Idea, Tata Teleservices Ltd, Telenor and Vodafone with a potential reach to over 800 million subscribers.

Digital entertainment app, Yonder Music, expanded into Indonesia and Bangladesh in May 2016. With Yonder Music currently available in three markets, it is set to expand further into Axiata’s remaining markets of operation and beyond Asia in 2017. XL Axiata launched Tribe, a Video On Demand service in partnership with Malaysia’s Astro. bdtickets, Robi’s e-ticketing platform was officially launched in January 2016 and has established itself well in the Bangladesh market.

Meanwhile, elevenia and 11street continue to grow and are both strong number two Online Marketplace Platform (OMP) players in their respective markets. Wow.lk continues its lead in Sri Lanka and has increased its market share gap with the competition. Adknowledge Asia is the largest AdTech company in the region and expanded its presence to India by hiring a Country Managing Director to oversee market development.

WSO2.Telco joined several of the world's largest mobile network operators, infrastructure providers, system integrators and other technology companies in support of Facebook’s Telecom Infra Project (TIP). The initiative brings these companies together to collaborate on the development of new technologies and reimagine traditional approaches to building and deploying telecom network infrastructure.

Finally, Axiata Digital Innovation Fund (ADIF), the largest digital services corporate venture capital fund in Malaysia, continued its year two batch of IT investments. Three Malaysian- owned technology companies received funds of RM11.4 million which will be used to expand their business and product reach into the regional digital services marketplace.

In 2016, Axiata recorded six key milestones in strengthening, expanding and increasing its digital portfolio covering digital commerce and activation, digital advertising and digital entertainment.

  • Private placements closed for FreedomPop and AdKnowledge Asia from external investors

  • Completed acquisition of assisted e-commerce StoreKing, Axiata Digital’s first investment in India

  • Digital entertainment app Yonder Music expanded into Bangladesh and Indonesia, and is now in three markets with more launches in 2017

  • E-commerce assets continue leadership position with Wow.lk leading in Sri Lanka, and elevenia and 11street strong #2 players in Indonesia and Malaysia respectively1

  • Expanded its portfolio with IoT Cloud - a cloud-based IoT platform launched in Sri Lanka to serve the Group’s markets; and StoreKing in India

  • Launched Indonesian Video-on-Demand (VOD) service, Tribe, in partnership with Astro; e-ticketing service bdtickets in Bangladesh; and WSO2.Telco’s digital enablement hub to deliver the GSMA Mobile Connect mobile-based authentication solution in India

In 2016, Axiata recorded six key milestones in strengthening, expanding and increasing its digital portfolio covering digital commerce and activation, digital advertising and digital entertainment.

Private placements closed for FreedomPop and AdKnowledge Asia from external investors

Completed acquisition of assisted e-commerce StoreKing, Axiata Digital’s first investment in India

Digital entertainment app Yonder Music expanded into Bangladesh and Indonesia, and is now in three markets with more launches in 2017

E-commerce assets continue leadership position with Wow.lk leading in Sri Lanka, and elevenia and 11street strong #2 players in Indonesia and Malaysia respectively1

Expanded its portfolio with IoT Cloud - a cloud-based IoT platform launched in Sri Lanka to serve the Group’s markets; and StoreKing in India

Launched Indonesian Video-on-Demand (VOD) service, Tribe, in partnership with Astro; e-ticketing service bdtickets in Bangladesh; and WSO2.Telco’s digital enablement hub to deliver the GSMA Mobile Connect mobile-based authentication solution in India

Footnote

1 #2 players in terms of Gross Merchandise Value (GMV)