AirAsia launches venture capital fund to back startups in Southeast Asia

AirAsia Group said Monday it was launching a venture capital fund in the US to invest in startups seeking to enter or expand in Southeast Asia. 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 $10m, and the fund has already invested in a couple of companies, said Aireen Omar, deputy CE. 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 program. AirAsia has been trying to re-invent itself as a travel and technology firm to exploit data and offset cyclical volatility in airline earnings. The group last week posted a fourth-quarter net loss, its first quarterly loss in over three years, citing higher fuel prices and lease costs.<br/>