German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is considering a $22-million investment in the fourth Southeast Asia fund of Singapore-based venture capital firm Jungle Ventures, according to its disclosure.
Jungle Ventures earlier filed with the US Securities and Exchange Commission to raise its fourth fund – Jungle Ventures IV – that will invest in 15 to 20 early-stage, high-growth companies in sectors such as consumer internet, fintech, business to business, and SME tech-focused firms.
The VC firm, whose portfolio includes prominent internet tech firms like Sociolla, Pomelo, and Kredivo, did not specify the target corpus for Jungle Ventures IV but several sources earlier told DealStreetAsia that Jungle Ventures is eyeing $400 million for the latest fund.
DEG said Jungle’s latest fund will help strengthen and professionalise companies and management teams. It will also be used to promote growing businesses in the region, where more people will be employed.
“DEG supports fund managers that are sustainable investing into growing companies in emerging markets such as Southeast Asia,” the Dutch financial institution said.
DEG, which is a subsidiary of KfW, a German state-owned development bank, will join World Bank Group member International Finance Corporation (IFC), which is also considering a $25-million investment in Jungle Ventures IV.
DEG’s participation in Jungle Ventures indicates a growing interest in the Southeast Asia region, where the German financier has taken multiple limited partner stakes in regional funds in recent years.
Apart from Jungle Ventures, DEG has also invested in Integra Ventures II, Asia Partners I, Openspace Ventures III, Jungle Ventures III, Quadria Capital II, Creador IV, Provident Growth Fund II, and Lombard Asia V.
Jungle Ventures, one of Southeast Asia’s oldest venture capital firms, closed its third Southeast Asian fund at $240 million in late-2019, attracting a strong roster of limited partners, including Temasek, IFC, Cisco Investments, and DEG. Its second vehicle was closed at $100 million in 2016.
The venture firm has secured seven exits to date, three in 2020. They are Singaporean inventory management platform TradeGecko which was sold to Intuit; digital credit platform Paysense, which exited to PayU (owned by Naspers); and regional mobile video advertising firm Pokkt that was sold to Anymind Group.