Finch Capital to team up with Indonesia’s CCV for co-investments

Jakarta, Indonesia. Photo by Afif Kusuma on Unsplash

Netherlands-based early-stage fintech investor Finch Capital is looking at a co-investment arrangement with Central Capital Ventura, the venture capital arm of Indonesia’s largest private lender Bank BCA, for its Southeast Asia fund targeting a corpus of $75 million, DealStreetAsia has learnt.

According to industry sources, the team-up will see both parties leveraging on each other’s strengths. BCA, for example, is expected to gain access to Finch’s global network and deals, while Finch will have exposure to BCA’s ecosystem and local network.

When contacted by DealStreetAsia, Finch Capital and CCV declined to comment on the development.

In 2019, Finch told DealStreetAsia it was planning to raise a $75-million vehicle targeted at early-stage startups in Southeast Asia, with a focus on the Series A stage. While the firm had since begun the fundraising process, its progress had been hampered due to COVID-19-induced travel restrictions. 

Parallelly, Finch is also raising a separate Europe-focused vehicle with a target corpus of $200 million.

The partnership with Central Capital Ventura comes just two months after Finch announced a collaboration with MDI Ventures, the venture arm of state-owned Telkom Indonesia.

The pair launched a joint early-stage vehicle targeting a corpus of $40 million. Called Arise, the new fund plans to invest in Indonesia-focused tech startups, targeting the post-seed or pre-Series A stage.

With these partnerships, Finch Capital expects to gain access to two unique ecosystems to source deals.

While Finch will look at a broader range of sectors with the Arise fund, it will access fintech startups at the Series A and above stages with the CCV partnership, sources said.

Finch Capital has been actively investing in Indonesia over the last few years. Its Southeast Asia portfolio includes 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, meanwhile, has been investing purely 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.

The Finch-CCV partnership will mean one less competitor in the fintech-focused VC space in Indonesia. Other active fintech investors include Mandiri Capital Indonesia, BRI Ventures and OCBC NISP Ventura.

Sector-agnostic VCs too have been targeting fintech investments over the past few years, a trend that has led to the growth of payment unicorns such as OVO and GoPay while a number of lending startups are inching closer to join the coveted $1-billion valuation club.

Beyond payments, lending and financial marketplace verticals, VCs are now demonstrating increasing interest in new sub-sectors such as insurance and wealth management.

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.