Indonesia: BRI completes acquisition of VC firm Bahana Artha Ventura

Photo by Bank Rakyat Indonesia

Indonesian state-lender Bank Rakyat Indonesia (BRI) has completed the acquisition of 35 per cent stakes in venture capital firm Bahana Artha Ventura (BAV), a subsidiary of state-owned Bahana Pembinaan Usaha Indonesia (BPUI).

According to a filing to the Indonesian Stock Exchange, Bank Rakyat Indonesia paid IDR 71.32 billion (US$5.28 million) for 71,207 shares of BAV through a private placement agreement.

“Investment in BAV is part of the company’s non-organic growth strategy that has been set in BRI’s 2013-2017 Corporate Plan, and stated in the Business Plan 2017-2019,” BRI management said in the statement, adding that the strategy is aimed to achieve the firm’s aspiration to provide integrated financial services to customers.

The state lender said that its increasing role in the financial inclusion development and the need to “enhance the company’s innovation and collaboration with start-up fintech” were among the main reasons of the acquisition.

“The selection of BAV…is based on the similarity of business focus with BRI, which is the small and medium enterprises segment, which hopefully accelerate synergy and integration in the future,” BRI said.

BRI first hinted of the acquisition in July, when it said that it was in the due diligence process.

“(The acquisition is) considering that we don’t have VC and security subsidiaries yet. We continue to focus on expanding and strengthening our subsidiary units,” BRI president director Suprajarto was quoted as saying.

Dailysocial had reported that the BRI lining up Rp 500 billion ($37 million) for the VC firm’s expansion.

BRI joins the club of Indonesian banks – state-owned and private – that have set up their own VC arms to venture into fintech. Bank Mandiri was among the first to launch its investment arm in 2015. Since then, Mandiri Capital Indonesia (MCI) has invested in about 5-6 fintech startups, deploying around Rp 150-200 billion of capital per year.

In January this year, private lender Bank Central Asia (BCA) launched a venture capital business unit called Central Capital Ventura (CCV). It has committed Rp 200 billion ($15 million) in investments so far.

Also Read:

Indonesia’s fintech investments set to touch record high in 2017

Indonesian lender BNI mulls setting up VC arm, investing in fintech

Mandiri Capital Indonesia invests $2m in payments startup Cashlez

Indonesia lender BRI hires Telkom exec to boost fintech, to form VC unit

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.