Northstar backs major Southeast Asian bedbank

Singapore-based Northstar Group has invested an undisclosed amount into MG Group, the Southeast Asian bedbank.

Headquartered in Indonesia, MG Group comprises of a number of different distribution channels serving the various sectors of the travel industry. The core MG Bedbank business services retail travel agents through its B2B booking platform, as well as supplying its content to global wholesalers, aggregators and tour operators.

William Newley, CEO of MG Group, said that Northstar’s capital injection would help his company accelerate its expansion across Southeast Asia.

“With the Northstar Group onboard, our independent position within the travel industry is now fully secured,” Newley said. “We will continue to work closely with our distribution partners, providing the very best rates and exceeding their expectations on service levels.

“We are heavily focused on developing our technology and have a roadmap to develop a best-in-class platform, able to compete on a global level. We look forward to delivering growth to our suppliers across the region and establishing MG as the network orchestrator in hotel distribution in Southeast Asia,” he added.

This marks the Northstar Group’s latest investment following the recently announced SG$331 million (US$239m) proposed deal for Innovalues, its participation in Go-Jek’s US$550m capital raise, and its US$1 billion structured financing of the Salim Group.

“We are excited to partner with William and the rest of the MG team to accelerate the company’s growth both organically and potentially through acquisitions,” said Aditya Kamath, the group’s executive director.

“MG’s innovative management team has done an excellent job of leveraging its dominant position in the Indonesian market to grow its regional presence. We believe that as an independent business with significant financial backing, MG will be able to achieve its full potential.”