Japanese IT firm NS Solutions has made an unspecified investment in the second fund of Indonesian venture capital firm Alpha JWC Ventures, according to a statement seen by DEALSTREETASIA.
The fund was launched early last year with a target corpus of $100 million and hit its first close a few months later in July, according to the VC firm’s website. Alpha JWC says fundraising is ongoing and expects to reach the final close for its latest vehicle before the end of this year.
Tokyo-listed NS Solutions offers system integration and cloud computing services and other technology solutions targeted at corporate clients.
The company is no stranger to the Southeast Asian tech market. Since 2011, NS Solutions has established subsidiaries in Singapore, Thailand, and Indonesia. In 2015, it made an investment in Indonesian company PT Sakura System Solutions that provides technology services and solutions, from network management to software training, to corporates.
In Alpha JWC, the Japanese giant will be working with a VC firm that has been operating in Indonesia since 2015 and boasts 28 active portfolio companies, including Funding Societies, Online Pajak and Kredivo. The firm has also achieved two exits so far; co-working space network Spacemob was acquired by WeWork, while business news platform DealStreetAsia (that’s us) was acquired by Nikkei Group earlier this year.
“More than just investment, the two companies will work together in terms of knowledge and network sharing, so not only us, but also our clients, subsidiaries, and portfolio companies can benefit from this partnership,” said Toshiyuki Kajiwara, Director of Global Business Development & Management Department at NS Solutions.
With the investment, NS Solutions will introduce local tech services and solutions of Alpha JWC Ventures’ current and upcoming startups to its local Japanese customers, while also sharing its group’s technology and know-how with the startups.
“We believe having NS Solutions supporting us and our portfolio companies can bring together the best of Japan and Southeast Asia,” said Alpha JWC Ventures co-founder and managing partner Chandra Tjan.
Alpha JWC’s second fund follows its debut $50-million fund closed in 2017, which was backed by high-quality institutional investors from Asia, US and Europe, and has invested in companies across fintech, SaaS, big data analytics, marketplace and e-commerce sectors.
The VC firm says it has already started deploying out of its second fund, backing eight companies so far, including Ajaib, Target Media Nusantara, Kopi Kenangan, and Base.vn.
“For deployment, the fund is usually for five years, so 25 per cent per year, and we’re on track,” co-founder Jefrey Joe told us.
Alpha JWC joins a number of regional VC firms that have raised considerably larger funds recently. Earlier this year, fellow Indonesian VC firm Kejora closed its joint fund with Korea’s Intervest at a corpus of over $100 million, while East Ventures closed its EV Growth fund at $200 million.