The week of June 28 to July 3
The deal flow has been robust across Asia, especially Singapore, as funds and startups raise capital for growth from the pandemic.
There has also been buzz this week in Malaysia, as competition for the country’s five digital banking licenses intensifies.
Among the deals that are said to hit the market is the Indonesian media and tech conglomerate Emtek Groupthe investment of Bank of India Indonesia. Emtek is the major shareholder of Indonesian e-commerce unicorn Bukalapak and DANA e-wallet.
Other big deals in Southeast Asia announced during the week included Fairbancof pre-series A of at least $ 2 million from investors, including ADB Ventures and Eastern companies.
On the trail of fundraising
Supported by Temasek Vertex Ventures is set to secure $ 330 million for the first close of its second growth fund, which is capped at $ 400 million. Vertex Growth’s first fund closed at $ 290 million in 2019. Managing Director James Lee said in an interview that the company plans to diversify its LP base with the fund.
Among its investors are funds of funds backed by the South Korean government Korea Venture Capital Investment Company (KVIC), which commits $ 15 million to the fund.
So far this year, KVIC, which deploys approximately $ 100 million globally each year, has approved commitments of $ 37.5 million for five venture capital funds in Asia-Pacific, the Middle East and in North Africa. The other general practitioners are the Chinese Northern Light VC and Vietnam Go on adventures.
Northern Lights, which supports start-ups in China and the United States, is raising $ 700 million for its new RMB and U.S. dollar denominated funds. The company is an investor in Chinese food delivery player Meituan and genomics company BGI.
headquartered in Singapore Speed ââcompanies secured $ 8 million for its Southeast Asia-focused hospitality and travel fund. The target corpus is $ 20 million for deployment in early stage and early stage tech startups, as well as struggling travel and hospitality businesses.
In Indonesia, Alpha JWC Ventures raises $ 300 million for its third fund. His second fund closed at $ 123 million in 2019.
Separately, Singapore-based B2B retail platform Zilingo reportedly raised $ 35 million from existing shareholders in a fundraiser that took place about six months ago.
In private equity, Indian firm Capital of Kedaara secured commitments of $ 221 million from 13 investors for the first closing of its Kedaara Capital Growth Fund III. The predecessor fund closed in 2017 at $ 750 million.
In Malaysia, Creator expects to achieve the first close of its fifth fund this month, although it aims to fully deploy the previous fund with two investments closing in August, Creador’s founder and CEO Brahmal told DealStreetAsia Vasudevan.
Another Malaysian PE company, Bintang Capital Partners, aims to raise 300 million ringgit, or $ 72 million, for its new vehicle by September, under the Malaysian government’s matching fund program. Bintang has already raised 40 million so far, managing partner Johan Rozali-Wathooth told DealStreetAsia.
Separately, government-linked private equity firm Ekuiti Nasional (Ekuinas) reported that his second fund had a gross portfolio return of RING 517.2 million. This translates into a gross internal rate of return (IRR) of 11.9% per annum, and a net IRR of 8.2%, for the Ekuinas Direct (Tranche II) fund of 1 billion ringgit.
However, the Ekuinas Direct (Tranche III) fund of 1.5 billion ringgit recorded a gross portfolio loss of 75.4 million ringgit, representing a negative gross IRR of 3.2% per annum.
Investors are deploying at a sustained pace
Singapore State Investor Temasek is set to lead $ 100million fundraiser in Indian neobank Open. The startup is also in talks with existing investors Global Tiger and 3one4 Capital to raise capital.
Fintech startups in Southeast Asia have also tapped more capital, like DealStreetAsia’s DATA ADVANTAGE bulletin this week noted.
Among the fundraising updates included the GrabPay obtaining $ 55 million, funding of $ 13.4 million from blockchain startup Contour and the Indonesian accounting app BukuKasThe $ 50 million Series B financing of Hedosophy.
Hedosophia, founded by a London-based technology investor Ian osborne, has now added two Southeast Asian companies to its portfolio. The company has also invested in a business services start-up in Singapore. Osome$ 16 million Series A.
Still in Singapore, a wealth management platform Endowus raised an additional $ 4.5 million from UBS, Samsung Ventures, and Singtel Innov8. The startup had raised $ 17 million in March.
In the Philippines, mobile payments start Voyager innovations raised $ 167 million from investors that include its existing shareholders PLDT, KKR, and Tencent. New investors in the cycle include IFC Financial Institutions Growth Fund.
In Vietnam, e-commerce company Tiki raised dong 1 trillion through corporate bonds – the first time he has done so. The funds will be used for short-term working capital. DealStreetAsia also understands that Tiki secured the first close of their roughly $ 100 million Series E round led by a global strategic investor.
In India, insurtech start-up Digital insurance raises up to $ 200 million from investors, including Sequoia Capital India and Capital of Faering. The new funding will value Digit at $ 3.5 billion.
Other offers this week include Partner group acquisition of a 24.9% stake in the Chinese freight forwarder Apex International and the Strattner Alternative Credit Fund invest $ 350 million in construction and e-commerce software application developer in Malaysia Vivocom International Holdings.
The results of startups
Separately, as Southeast Asia’s biggest startups rush to the finish line – a public market listing through a special-purpose acquisition company or the traditional initial public offering – there’s still obstacles to overcome.
For ridesharing and food delivery apps, it’s the dissatisfaction among the very people who have helped their business grow – the drivers and passengers “under contract” to carry commuters, packages, food and transportation. ‘grocery.
For Grab, in particular, even as its merger with the blank check company Altimeter Growth Corp has been delayed, apparently due to audit requirements, it is banking on its financial services business for growth. However, the unit still has some way to go and its business faces stiff competition from Go to in Indonesia.
The financial services sector in Indonesia continues to evolve and, as a result, attracting more market players and competition, startups Stockbit Co-founder Sigit Kouwagam said in an interview.
Meanwhile, as an Indonesian market Bukalapak is set to be listed on the Indonesian Stock Exchange by the end of this month – the first of its batch of Southeast Asian unicorns to go public – there are doubts whether a national listing is the best way for the company.
In Vietnam, the pandemic has resulted in a clear distinction between startups that continue to show post-crisis potential and others. A look at the valuations of startups in the country suggests a correction and a decline in transactions.
Yet, once the pandemic emerges, the momentum for agreements is expected to accelerate, even for companies in more traditional and offline sectors, observers say.
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