In our top scoop this week, we examined how MDI Ventures, the corporate venture capital arm of Indonesian state-owned telecom firm Telkom, has refrained from making any new investments in the past several months. Additionally, there has also been a delay in transferring funds to its investee companies.
Acknowledging the delay in fresh investments, Aldi Adrian Hartanto, Vice President of Investments at MDI attributed it to a decision by the parent company Telkom to postpone new investments pending “internal checks”.
DealStreetAsia learnt that the review of MDI’s investment strategies by Telkom was prompted by its losses in key investments such as Tanihub, Fabelio, and Zenius. Moreover, owing to the internal review, startups like Beleaf Farm, Pitik, and Good Doctor reportedly have not received the funds they were expecting from MDI.
Takeaways from Asia PE-VC Summit 2024
We continued to bring you coverage from our oversubscribed Asia PE-VC Summit held in Singapore 10 days back.
From our LP Summit track, we brought you perspectives from top speakers representing IFC, Flexstone, Adams Street and JP Morgan Asset Management. These experts shared that asset allocators are bullish on Asia and expect to increase their commitments to the region, buoyed by its economic tailwinds and the demographic shifts that are expected to shape strong private equity returns.
In a discussion centering on Middle East capital and the transformation it can bring to South and SE Asia, panelists observed that investments from the Gulf Cooperation Council are now encompassing broader strategic goals beyond immediate financial returns. Unlike in the past, there is a pivot towards tech, business services, and renewable energy sectors.
In a session on whether private credit was scratching the surface of the Asia opportunity, regional and global managers noted that the region offers plenty of deals. However, generating alpha in the region requires more art than science.
In SE Asia-focused discussions, investors predicted that as venture capital-backed companies work to improve their bottom line, exits may not be far off. Exits have been quite a struggle in SE Asia and the lack of liquidity has impacted startup fundraising in the region.
On the upside, SE Asia remains a hotspot for global investors as a blend of rapidly growing economies and tech-savvy populations presents unique opportunities. The global investor engagement in the region underscores a powerful, multifaceted strategy.
In a sector-focused session, we looked at how the changing contours of the healthcare sector in India and Southeast Asia and the ‘unbundling’ of services in multi-specialty hospitals have led to several new themes emerging with the promise of a long-term growth story.
In a panel on Indian venture capital space, speakers noted the trend of a shift in investment strategies from aggressive growth to a focus on profitability and strong governance in response to market corrections and tighter funding environments.
Despite a strong outlook for exits and a promising long-term growth story in India, rising valuations pose a concern prompting the need for disciplined investment strategies.
From our ESG summit track, we covered this session on the role of LPs in pushing the decarbonisation agenda. Investors are increasingly treating ESG practices as non-negotiable standards for businesses seeking capital. ESG is no longer just a tool for risk management.
Technological innovation and cross-sector collaboration are critical in addressing global food security challenges amid climate change. In Southeast Asia, players need to develop scalable, sustainable solutions that can help increase productivity, protect the environment, and support small-scale farmers, panelists observed.
As we concluded the 9th edition of our flagship summit, we have already started working on our upcoming Indonesia PE-VC Summit 2025. Watch this space for more updates and consider registering for the summit in Jakarta to deep dive into dominant themes unfolding in SE Asia’s maximum market.
Let’s move on to the other headlines that dominated this week.
LP-GP Quarters
Thailand’s 10 Bridge Capital has garnered $195 million in the first close of its fourth Thailand-focused private equity fund, defying the challenging fundraising climate for Southeast Asian fund managers.
Singapore state investor Temasek will set aside around $77 million as concessional capital for climate action.
Citigroup and Apollo Global have partnered for a $25 billion private credit and direct lending programme, which will also be joined by Mubadala Investment Company and Apollo’s annuity and retirement services unit, Reuters reported.
Investments from World Bank’s private investment arm IFC grew 28% to hit a record $56 billion in its financial year to end-June, Reuters reported.
Brookfield Asset Management has raised $2.4 billion for the Catalytic Transition Fund (CTF), which is backed by the United Arab Emirates and aims to scale up climate finance in emerging markets.
Canadian private markets investment firm Northleaf Capital Partners has opened an office in Seoul to tap LPs from this region. And, General Atlantic plans to open an Abu Dhabi office by the end of the year, Reuters reported.
Fubon Life Insurance has disposed of its holdings in three USD-denominated and two EUR-denominated funds at an expected profit of about $270 million. And, Cathay Life Insurance has committed $50 million to Summit Partners‘ growth equity fund.
US-based Tribe Capital, which has a dedicated India investment vehicle, has partnered with homegrown investment firm Oister Global to launch a new fund focused on secondary transactions in India.
Optimistic Capital has launched a $24-million microbreweries-focused fund to tap into the burgeoning sector in India.
From our India desk
In a major funding round, SaaS-based digital adoption solution provider Whatfix has raised $125 million in Series E financing led by Warburg Pincus.
Oravel Stays, the parent company of Indian budget hotel chain OYO, has agreed to acquire American lodging franchisor G6 Hospitality for about $525 million.
In an exit transaction, Warburg Pincus unit sold its entire 8.6% stake in Indian automobile portal CarTrade Tech through a bulk deal worth $44.86 million. As of June 30, Warburg owned more than 4 million shares in CarTrade, making it the company’s second-largest shareholder.
In a spate of IPO-related developments from India, reported by Reuters, SoftBank-backed Swiggy has filed papers for an offering that could be worth $1.25 billion, as the food delivery firm looks to tap a booming stock market in one of India’s biggest listings this year.
Hyundai Motor India has obtained approval for its IPO from the market regulator. In other updates, India’s HDB Financial Services, a unit of HDFC Bank, has approved raising $299 million through a fresh issue of shares in its IPO.
Schloss Bangalore, the owner of Indian luxury hotel chain ‘The Leela‘, has filed for a $599-million IPO while Indian fast-food chain Wow Momo Foods and Fractal Analytics, known as India’s first AI unicorn, are also weighing a public market debut.
Earnings and financials
TPG- and KKR-backed Livspace, a home interiors and renovation company, nearly halved its net loss for the fiscal year ended March 31, 2024, driven by increased product sales in its largest market, India.
The Philippines-based fintech unicorn Maya Innovations, formerly known as Voyager Innovations, posted lower losses and higher revenue for the year ended December 31, 2023, according to regulatory filings.
Singapore-based wealth management platform Endowus reported a wider net loss for the financial year 2023, even as the company’s revenue more than doubled, according to regulatory filings.
Deal news
Jungle Ventures-backed Vietnamese social commerce platform Mio, operated by ITaphoa Company, Ltd, is said to have shut down its operations, becoming the latest casualty in a challenging market environment.
Food delivery giant Deliveroo ceased operations at its last two cloud kitchen locations in Singapore, citing high operating costs and decreasing restaurant demand.
Temasek-backed 65 Equity Partners is weighing an investment in Singaporean home appliance maker PRISM+.
A consortium led by private equity giant KKR and Australian private investment firm Skip Capital has agreed to acquire a 74.25% controlling stake in Queensland Airports from The Infrastructure Fund, managed by Macquarie Asset Management, State Super, and Australian Retirement Trust.
Macquarie Group’s asset management division is taking a minority stake in the green-energy arm of U.S. investor D.E. Shaw for an equity investment of as much as $1.73 billion.
KKR and GIC have appointed Bank of America, Jefferies, and UBS to sell their majority stake in the Philippines’ Metro Pacific Health in a deal that could value the company at $3.2 billion.
Lastly, we featured an interview with LYFE Capital founding and managing partner James Zhao who believes that global strengths have emerged as the top criteria for investing in healthcare, as investors seek business resilience and viable exit routes amid macro market uncertainties. Zhao’s going-global investment strategy is reflected in some of the latest deals by LYFE Capital.
