Asia Digest: Japan's Aozora Bank invests in InnoVen Capital fund; Sequoia leads $37m Series A in Dubai's Huspy

Aozora Bank invests in InnoVen Capital’s Southeast Asia venture debt fund while Sequoia Capital India leads a $37-million Series A in Dubai proptech Huspy.

Aozora Bank invests in InnoVen Capital’s Southeast Asia venture debt fund

InnoVen Capital has roped in Japan’s Aozora Bank as a limited partner (LP) for its upcoming Southeast Asian venture debt fund. No financial details were disclosed in the announcement.

The full-service Japanese bank, which is listed on the Tokyo Stock Exchange (TSE) and oversees assets of over 5 trillion yen, said it will use this investment to increase its exposure to the Southeast Asian venture ecosystem.

InnoVen made its $50-million first close for the Southeast Asian fund in October last year, after securing capital from Temasek Holdings, which is among its long-term anchor investors.

This is the first time InnoVen Capital is seeking external LPs for fundraising, having been previously backed solely by Temasek and United Overseas Bank (UOB). It is also raising external capital for its China and India-focused venture debt funds.

InnoVen now comes under Seviora Holdings, a $55-billion asset manager comprising Azalea Investment Management, Fullerton Fund Management Company and Seatown Holdings International. It has invested nearly $210 million in over 100 debt transactions to date, across startups such as Janio, Lummo (formerly BukuKas) and Funding Societies.

Venture debt is a new and relatively nascent asset class in Southeast Asia.

Apart from InnoVen Capital, there is a handful of venture debt funds in the region, including Genesis Alternative Capital and Abound Capital, targeting early-stage firms. In July 2021, Temasek and DBS Bank launched EvolutionX, a $500-million debt financing platform targeting growth-stage startups.

Sequoia Capital India leads $37m Series A in Dubai proptech Huspy

Dubai-based proptech startup Huspy has raised a $37-million Series A round led by Sequoia Capital India, according to a statement. The round was also joined by Founders Fund, Fifth Wall and Chimera Capital as well as existing investors Breyer Capital, VentureFriends, COTU, Venture Souq and BY Venture Partners.

The round is one of the largest Series A rounds recorded to date in the Middle-East North Africa (MENA) region.

The funding proceeds will be used to invest in technology development and to double down on growth in the UAE and Spain, as well as Europe.

Founded in 2020, Huspy aims to simplify the process of home ownership. Its platform offers a range of digital solutions for buyers, property agents and mortgage brokers, and it recently launched a marketplace aimed at helping users discover, purchase and finance a home.

In less than two years since its inception, Huspy now claims to have reached a $2 billion annualised GMV, growing at 25% month-on-month to become one of the UAE’s largest housing platforms. Earlier this year, Huspy acquired Home Matters, a mortgage consultancy, to form one of the biggest home financing firms in the UAE.

“We aspire to continue building Huspy into a category-defining company and set a new bar for the way people buy and finance their houses,” said Jad Antoun, co-founder & CEO of Huspy.

“In a short time, Huspy has demonstrated its strong value proposition for the real estate ecosystem and has become the market leader in mortgage broking in the UAE with healthy unit economics,” said Sequoia India Managing Director GV Ravishankar.

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