Catcha Digital adopts ‘bold dealmaking' and ‘buy-and-build' approach to become region's number one

The Sun

a day ago

KUALA LUMPUR: Catcha Digital Bhd (formerly REV Asia Bhd) is banking on bold dealmaking to scale its Southeast Asian operations – even as market scepticism and macro uncertainty persist.
CEO Eric Tan said Catcha Digital is aggressively pursuing a buy-and-build strategy to become Southeast Asia's leading digital conglomerate.
'You may have noticed we do quite a bit of acquisitions, which is not very common among public companies in Malaysia,' he told SunBiz in an exclusive interview.
'We take what we call a 'buy-and-build' approach – starting with platform acquisitions and then adding synergistic businesses to plug into the ecosystem. The idea is that one plus one equals three.'
Tan said the ultimate goal is to become the region's number one digital group. 'Our path forward is to build two high-growth, complementary businesses – media and software.'
He said Catcha Digital aims to establish its digital media division as Malaysia's market leader before expanding regionally within the next two to three years. Meanwhile, its software segment will focus on acquiring and developing vertical-specific solutions.
'If a product is built for banks, it serves banks, not retailers or unrelated industries,' he explained. 'We want to build a portfolio of essential software that goes deep into key sectors.'
Addressing concerns over Catcha Digital's fast-paced dealmaking, Tan said: 'People are worried because they don't understand how M&A works at this scale, and that's a good thing. It means no one else is doing it like we are.'
The group employs a stringent selection process, screening around 2,000 companies annually, meeting with 300 to 400, and acquiring only a handful.
'We look for businesses with predictable revenue, strong management, and long-term sustainability. We're not under pressure to sell in five years. We want to be permanent owners like Warren Buffett,' Tan said.
After two years of dealmaking behind the scenes, Catcha Digital has officially entered execution mode. Between January and March this year, Catcha Digital announced six acquisitions. This includes the completed acquisition of 51% of Nexible, and formalised deals for 92.5% of Theta Service Partner and 51% of DS Services, both pending completion.
The group also acquired a 60% stake in Drive 2 Digital on May 7. Other pending deals include a 70% stake in Tastefully Malaysia – with an option to buy an additional 20% – and a 60% stake in Framemotion Studio.
Despite a 12.5% year-on-year drop in net profit due to higher content costs, Catcha Digital posted RM9.49 million in revenue for the first quarter of 2025, up 8% from a year earlier, driven by its flagship media unit, iMedia.
On outlook, Tan said the group is prepared to navigate macroeconomic uncertainty. 'We do worry about how external forces might affect our plans. But as the saying goes, in every crisis, there's opportunity.'
However, he pointed to two structural tailwinds supporting Catcha Digital's strategy: the acceleration of artificial intelligence and digital adoption, and a generational shift in business ownership.
'We're focused on essential, recurring-revenue businesses. If one product slows down, another can compensate, that's how we build resilience.'
Tan acknowledged that Catcha Digital's model may seem unconventional, but emphasised its track record. 'iProperty was built from 12 companies, iCar from five. We have the people, the process and the experience. Now, it's about executing well.'