Innoven Capital clocks maiden deals in Vietnam, backs Tiki and UP Co-working

Southeast Asia- and India-focused venture debt firm Innoven Capital has completed its maiden deals in Vietnam, thereby providing loan to e-commerce firm Tiki and shared workplace UP Co-working, according to an announcement.

Financial terms of the two separate transactions were not disclosed.

Innoven Capital said in a statement that the firm is assessing a few more companies in the pipeline.

“Vietnam has always been an integral part of our investment thesis. We have been actively exploring opportunities and building relationships in the country ever since we started our Southeast Asian operations three years ago,” said Chin Chao, Innoven Capital’s CEO of Southeast Asia.

“With growing investor interest in start-ups in Southeast Asia, we see more and more companies and founders in the region, particularly in Vietnam, wanting to use less-dilutive loan capital to accelerate expansion.”

These are also the first venture-debt transactions recorded in Vietnam.

Before the announcement of these debt financings, we reported that Tiki was in the process of raising about $100 million from its existing investors and others. Meanwhile, it is understood that UP has also secured a private equity funding round and will announce the deal soon.

Innoven Capital, which recently pulled in $200 million from Temasek Holdings and United Overseas Bank, has backed over 200 startups with a total debt-based financing of $500 million.

While Tiki and UP are growth-stage companies, Innoven Capital has continued to offer venture loans to early-stage companies such as Indonesian logistics company Kargo and e-scooter sharing company Beam Mobility.

Other Southeast Asian companies it has invested in include Akulaku, Carsome, Deskera, Fave, InstaRem, M17 Entertainment, Pomelo and RedDoorz.

Even as the concept of venture loan is still new to this region, Innoven Capital has managed to build a regional portfolio of over 40 companies across Vietnam, Indonesia, Malaysia, Singapore and Thailand.

Southeast Asia has seen the birth of a new venture debt provider, Genesis Alternative Ventures, backed by family office Sassoon Investment Corporation and Indonesia’s PT Bank CIMB Niaga. Meanwhile, Indonesian venture capital firm Ideosource is also devising a venture debt scheme targeting early-stage startups.