TNG Digital also received a follow-on investment from its current shareholder and parent company Touch ‘n Go Group, according to a report from Nikkei Asia.

The new investment underscores the collaboration between two key segment leaders — one in e-commerce and the other in digital financial services and payments.

Nikkei also reported that the proceeds from the new round of funding will be used for expansion in all areas of financial technology or fintech.

TNG CEO Effendy Shahul Hamid said the collaboration would create value for users and merchants across the Lazada and Touch ‘n Go ecosystems.

He said the funding also put the company in a good position for the next phase of its growth.

Lazada Malaysia CEO Alan Chan said the digital payment services will be an integral additional service to enhance customer experience on Lazada.

“Our long-standing partnership with Touch ‘n Go eWallet has served our customers well, enabling buyers to check out easily and quickly,” he added.

The funding round brings the total amount raised by TNG Digital in the last 18 months to over RM1 billion.

TNG Digital was jointly founded in 2017 by Touch ‘n Go and China’s Ant Group. Other shareholders include insurers AIA Group and US-based venture fund BowWave Capital.