Singapore’s Kollective Group seeks distressed tech assets amid COVID-19

Ho Kheng Lian, founder and managing partner of Kollective Group.

Kollective Group, a capital advisory and investment firm headquartered in Singapore, is on the lookout for distressed tech deals amid the COVID-19 crisis.

According to Kollective’s founder and managing partner Ho Kheng Lian, the firm is willing to invest $10-20 million per deal which would involve a full buyout, and cover liabilities and working capital needed to turn the business around. Kollective is targeting firms across seed to Series D stages with $100,000-1 million in monthly revenue, with a tolerance of up to $1 million burn per month.

It is open to firms in B2C and B2B sectors, particularly in e-commerce, insurtech, and socially-led businesses in commerce, platforms, or media. Depending on deal terms, the management team of the target company may be kept in place while its inefficiencies are fixed.

“The second and third quarters were still pretty quiet on the distressed front, but we think it’s because of the government stimulus and investors keeping their portfolio companies supported. We expect to see an increase in deal flow from the fourth quarter onwards as this support begins to dry up. We’re on track to close another 1-2 deals by the end of this year,” shared Ho.

Kollective has a target timeline of 18-24 months to turn around the companies it acquires, which it will then keep in its portfolio or seek an exit later down the line. It counts on experienced tech founders and operators to advise on their deals.

Ho declined to share how much Kollective has set aside for its distressed portfolio, adding that the firm is completely funded by personal capital provided by herself and her team.

Founded in 2018, Kollective Group operates three divisions: Kollective Ventures (minority investments), Kollective Capital (buyouts) and Kollective Advisory Partners (fundraising and M&A advisory).

It has raised funds for top technology companies and venture capital funds globally including SpaceX, M17 Group, Coffee Meets Bagel, Vertex Ventures, Monks Hill Ventures and Mantis Ventures by the Chainsmokers.

Kollective is also a early shareholder in firms like Wish, Jenfi, Ender, ClearMD and Zenrooms. Its most recent deal was the acquisition of dating company Paktor Group from M17 Entertainment, marking its foray into full buyouts earlier this year.

Editor’s note: An earlier version of this story incorrectly stated that Kollective’s capital advisory arm has roped in Sandeep Uberoi as partner. He was only advising the firm.

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.