Indonesia: Bank Mandiri launches VC unit, targets investments in fintech

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PT Bank Mandiri Tbk (BMRI), Indonesia’s largest bank in terms of assets, has launched a venture capital business unit PT Mandiri Capital Indonesia (MCI), to invest in promising financial technology (fintech) startups.

“We will nurture incubators, cooperate with other venture capital firms as well as facilitate deal flow (to startups),” Eddi Danusaputro, CEO of Mandiri Capital Indonesia said, at a press conference, on the launch of the venture capital unit.

The bank’s captive VC unit will have an initial capital of Rp 500 billion  ($36.90 million) and it will look at investing in startups that provide innovative payment services relevant to e-commerce.

Explaining the rationale of getting into the venture capital stream, Bank Mandiri president director Budi Gunadi Sadikin said, Indonesia is seeing the emergence of disruptive technologies such as ride-hailing apps and and e-commerce that have changed the way people do business. The business of banking is savings, lending and enabling movement of capital. “Financial technology startups are in this money moving business. That’s why we (Bank Mandiri) entered this space with a focus on fintech,” Budi stated.

The bank VC is focussing on the fintech space to leverage on its existing business. At present, Bank Mandiri serves 2 million merchants, which receive payments in cash. The bank also serves 300,000 merchants that receive payments through electronic data capture (EDC) machines.

The bank’s move in establishing venture capital is also in line with a rule by the Financial Services Authority (FSA) that asked domestic banks to facilitate startups outside the financial sector.

FSA plans to issue a venture capital regulation that would require firms to invest 70 per cent of their money in start-ups, which do not have access to conventional lending. The regulation is expected to come into play by the end of this year.

Mandiri Capital earlier set up a joint venture (JV) with BC Card from South Korea to run the EDC operations of the bank.

The newly-formed venture capital (VC) will also take over part of PT Digital Artha Media (DAM) shares from its sister company PT Mandiri Manajemen Investasi (MMI). MMI now owns 30 per cent at DAM joint with investment company PT Kresna Graha Investama Tbk (KREN).

Also Read : Indonesia: Mandiri Capital in JV with S Korea’s BC Card for electronic data capture ops

Indonesian startup Moka ties up with Bank Mandiri to launch mobile payment solution

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.