Indonesia-based venture capital firm Indogen Capital has pushed the final closing deadline of its $50-million second fund to the end of 2021 from its initial target of December 2020.
Indogen managing partner Chandra Firmanto told DealStreetAsia, the firm will delay the final closing as the COVID-19 pandemic has slowed the fundraising process due to travel curbs and other restrictions.
“We couldn’t rely on online calls because we still need to meet [our potential investors] and build the relationship first. COVID has created a boundary for us [to conduct meetings and undertake travel]. Yet, we believe many investors are interested in Indonesia,” Firmanto told DealStreetAsia.
DealStreetAsia’s latest research and analytics report also shows that VC fundraising weakened during the quarter as a result of pandemic-induced national lockdowns.
At first close, Indogen’s second vehicle attracted capital commitments from six investors (LPs) including Japan’s Striders Corporation and some undisclosed Indonesian conglomerates.
Firmanto said Indonesia’s market is still attractive for foreign investors particularly investors from Japan, Korea, and Greater China.
Following the first close of the second fund, Indogen invested in two startups, Indonesia’s eatery solutions Wahyoo and esports firm EVOS.
By the end of 2020, it plans to invest in at least four startups across sectors such as SME-focused fintech lending, edtech, insurtech, and logistics.
Two exits in the pipeline
Early this year, Indogen had outlined an exit plan for two of its portfolio firms adding to the previous three exits it scored from the debut fund.
“For the first startup, we’re just offering the price on the secondary sale. Another exit is from the IPO of Philippine-based fintech startup Venteny,” Firmanto said, adding, Venteny will target its public market debut in Indonesia by 2021 or early 2022.
He claimed that Venteny had doubled its revenue growth in Indonesia, compared to its country of origin, in the first eight months of its operations. Venteny, which operates an employee-financing startup, expanded to Indonesia in 2019 and has over 110,000 users.
Betting on collaboration
The firm believes in building collaborations between international and local startups.
It facilitated the entry of Venteny into the Indonesian market. Similarly, it connected portfolio firm Wahyoo with Chinese ice-cream manufacturer Yili Group to distribute Joyday ice cream to Wahyoo’s partners including traditional small-scale local eateries, and restaurants.
Indogen is also working to bring EVOS to develop the esports ecosystem in Japan in collaboration with Striders.