SBI Holdings, Inc Monday said it had completed a $10 million investment into PT Bank Index Selindo, a SME-focused commercial bank in Indonesia, for a minority stake. Other details of the transaction were not disclosed.
The Singapore-based venture capital firm did the deal through its wholly-owned subsidiary SBI Ven Capital Pte Ltd, which manages the SBI FMO Emerging Asia Financial Sector Fund Pte Ltd. This fund is in partnership with the Netherlands Development Finance Company (FMO), the world’s largest development bank, and focuses on growth PE investments in the financial services and fintech areas across emerging Asian economies.
Founded in 1993, Bank Index has physical operations in 40 bank branches and cash offices. It intends to launch Internet services like online and mobile banking platforms in the next one to two years.
According to an official announcement, the bank’s “shareholders include a prominent Indonesian family”, and private equity and venture capital firms, like the aforementioned SBI-FMO fund and regional fund Creador.
The SBI-FMO fund, managed by Suramya Gupta, had recently bought a 10 per cent stake in an Indian micro-finance firm Satin Creditcare. It had also made an investment in Taraashna, an Indian bank correspondent, the company had announced.
“Financial service sector is showing strong growth in the target emerging Asian countries primary supported by growth in domestic consumption, financial and economic integration in the region, government policy to promote financial inclusion,” the announcement by SBI Holdings had added.