Soft Space, a Malaysia-based payment provider, has managed to raise US$5 mn in its series A funding round. The startup is currently active in its home market, Taiwan, Indonesia, and Thailand and looks to expand its outreach across Southeast Asia and potentially in Japan. The firm is also working with Japanese companies that are aiming at the market in Southeast Asia to assist them to adapt to local payment trend. Transcosmos, a Japanese e-commerce service provider, is the sole investor.
The Transcosmos deal represents the Malaysian company’s first institutional investment round. Prior to this, it was getting fuelled by a government grant and angel funding. With this new backing and existing partners such as Sumitomo Mitsui Card Corporation, Soft Space is evaluating the potential to tap into the Japanese market.
Soft Space Strives to Gain from Booming Internet Economy in Southeast Asia
Soft Space is trying to capitalize on the booming trend of digitization in Southeast Asia. According to a report by Google, the internet economy in the region is anticipated to reach a valuation of US$200 bn within the next decade. Indonesia, due to its flourishing economy and a large base of population, is on the radar of the company for business expansion.
The company marked take-home revenues of US$6.5 mn over the last year. As said by the senior executives of Soft Space that more than profitability, the company is trying to focus on scale and development. The hiring process has also been placed at a secondary position for now. However, the company is striving to acquire requisite financial licenses across its core market.