US-based investment firm Capria Ventures has made its first limited partner (LP) investment in Indonesia, backing early-stage venture capital firm AC Ventures, according to a statement.
AC Ventures became Capria’s fifth fund manager partner in Asia, the US firm said. Capria has previously backed general partners including Singapore-based Genesis Alternative Ventures, India’s Arkam Ventures and Unitus Ventures, and Dubai-based Global Ventures.
AC Ventures is raising its third fund and plans to hold a final close at $120 million by this year, according to Capria. In May, the International Finance Corporation said it was considering a $16 million commitment to the fund.
Managing $300 million in assets, the Jakarta-based VC firm has funded Indonesian companies such as Shipper, Stockbit, Aruna and Eden Farm, from its third vehicle.
“Capria will also look to co-invest directly in the portfolio companies, alongside AC Ventures, in breakthrough solutions with global potential,” said Dave Richards, co-founder and managing partner of Capria Ventures.
AC Ventures was formed in 2019 as a result of a merger between Convergence Ventures and Agaeti Capital Ventures. Together, they have invested in more than 100 startups since 2014, and have scored several exits.
The firm’s latest fund has already seen over 25 follow-on financing rounds into its portfolio companies since its 2020 first close, delivering over 2.5X gross return on invested capital in unrealised gains, Capria said.
“With global pools of capital chasing late-stage deals, to successful public market listings of Indonesian unicorns, a predictable exit ecosystem has also been established,” the US investor added.
Indonesia is home to seven unicorns including super app Gojek, online travel agent Traveloka, digital payments firm OVO and GoPay, online marketplaces Tokopedia and Bukalapak, and most recently fintech Xendit.
The market’s internet economy has been growing at 49% per year since 2015, and it also has the biggest stock exchange in Southeast Asia. “Liquidity is not an issue,” Capria said.
Capria invests in “soonicorn” companies across the world’s emerging markets, as well as in fund managers in these regions.
Earlier this year, Richards told DealStreetAsia that his firm was looking to invest in Vietnam, as well as frontier markets of Bangladesh, Nepal, and Cambodia.