Dutch investor Finch Capital, Indonesia’s Bank BCA’s VC arm to set up $200m joint fund

Photo by Josh Appel on Unsplash

Dutch early-stage fintech investor Finch Capital is planning to set up a joint venture capital fund by teaming up with Central Capital Ventura (CCV), the venture capital arm of Indonesia’s largest private lender Bank BCA, according to sources privy to the development.

The joint fund is said to be targeting to raise around $200 million. Both parties are currently in the process of applying for a fund management licence in Singapore, the people mentioned above added.

The move marks a shift from their earlier strategy when both Finch and CCV were exploring the idea of a co-investment arrangement to leverage each other’s strengths.

While Finch was looking to tap BCA’s ecosystem and deep local network, the Indonesian lender was keen to expand its reach through Finch’s network and deals. Both Finch and CCV were looking at a $75-million co-investment arrangement, as reported by DealStreetAsia in January this year.

According to sources, the earlier co-investment arrangement was initiated to anchor the LP commitments but now both parties are looking at the joint VC fund approach.

The joint fund will look at investing in fintech and financial services startups at the Series A and above stages. When contacted by DealStreetAsia, Finch Capital declined to comment while CCV has yet to respond to a query seeking more information.

Finch Capital, which has been actively investing in Indonesia, has backed bill payments platform Ayopop, reimbursement platform Jojonomic and regional super-app Grab. The investor also clocked an exit in 2018 when it sold its stake in fintech firm Cermati to local conglomerate Djarum Group, a shareholder in BCA.

CCV, on the other hand, has been investing from the balance sheet of BCA and predominantly in early-stage fintech companies. Its $15-million maiden fund has backed insurtech startup Qoala, payment company Wallex, and biometric platform Element. In late 2019, BCA injected an additional Rp 200 billion ($14.26 million) into CCV to pursue further investments in fintech startups.

Entrenched in the market

Apart from the CCV joint vehicle initiative, Finch Capital has also teamed up with MDI Ventures, the venture arm of state-owned telecom firm Telkom Indonesia, for a $40-million joint vehicle named Arise.

Last month, MDI Ventures and Finch Capital announced the first close of the joint debut fund. The fund had gathered commitments from third-party corporate investors, family offices, and high-net-worth backers. One of the fund’s backers is Indonesia’s publicly traded ICT firm PT Metrodata Electronics Tbk.

Based in Indonesia, Arise seeks to bridge the funding gap for early-stage tech companies. Going beyond writing cheques, the fund seeks to invest in startups early, even before the founders fully solidify their ideas and teams, provide access to strategic go-to-market partners via its corporate LP network and long-term capital through its affiliated sister funds, including MDI Ventures, Centauri Fund.

According to sources familiar with the matter, both Arise and the proposed Finch Capital-CCV vehicle will follow a different investment approach. “There will be no conflict or overlapping of interest,” they added.

Arise would mainly look at the post-seed to pre-Series A stage targeting broader sectors like logistics, healthcare. Meanwhile, the Finch-CCV joint fund would look at fintech play and invest at Series A and above.

With the joint funds, Finch Capital seeks to gain exclusive access to two unique ecosystems in Indonesia.  With BCA, Finch can leverage Indonesia’s largest consumer bank while the Arise-MDI will tap into the network of the country’s largest telecom operator (Telkom).

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.