The ongoing funding winter and economic challenges continue to weigh heavy on tech startups across markets. Among February’s most-read exclusives, we brought you the troubles facing several Indonesian startups.
While B2B marketplace GudangAda is said to be exploring options including winding down, fintech startup Mapan has hit a rough patch amid mass layoffs, thinning margins, and a sharp fall in volumes. We also captured the travails faced by retail investors followed by the recent meltdown in Indonesia’s top P2P lending platforms.
Don’t miss our feature on how the recent crises at two of India’s major startups—fintech giant Paytm and edtech firm BYJU’s—have shaken investor confidence, prompting fund managers to go slow with investments in the new economy sector and also renegotiate terms and rights in late-stage deals.
This monthly wrap edition also highlights how marque asset allocators including Mubadala, Siguler Guff, Harborvest and Hades Financial are evaluating the opportunities in specific Asian markets amid turbulent times.
In case you missed these stories, check out our curated list of trending scoops and analytical takes from February 2024.
Top stories of February 2024
Indonesian B2B marketplace GudangAda’s board said to be weighing options including winding down
Monetisation and scalability challenges have been mounting recently for tech startups focused on digitalising Indonesia’s small kiosks, or warungs.
KKR kicks off process to divest stake in Indonesia-listed bread maker Nippon Indosari
KKR acquired a 12.64% stake in Nippon Indosari, which owns the popular Sari Roti brand, for $74 million back in 2017. KKR had invested in the firm from its $9.3 billion Asian Fund III.
Meltdown in Indonesia’s top P2P platforms threatens to drive retail lenders away
Retail lenders account for 92.5% of total lenders in the P2P lending industry as of Nov 2023, per OJK data. However, they only contributed 11.75% of total financing.
Former Gojek execs’ Vietnamese coffee startup Révi bags funding from TNB Aura, others
The Vietnamese coffee chain market has seen a churn in recent years with the entry of new local and international players.
TikTok-Tokopedia deal to trigger portfolio reassessment and strategic shifts
Tokopedia made strategic investments in various startups in the archipelago to spruce up its expansion, and in most of the ventures, it holds a minority stake. There’s an opportunity now for startups to collaborate and leverage TikTok’s infrastructure and expansive reach.
Ula likely to close down Indonesia office, looks to transition to asset-light business
The shift follows heavy capital expenses and tough economic conditions that forced Ula to lay off staff and press pause on its business in October last year.
Siguler Guff is closely evaluating opportunities in SE Asia, bullish on India
Siguler Guff has intensified its investment activity in India lately, citing the country’s robust fundamentals such as a growing middle class and economic dynamism.
Indonesian fintech startup Mapan in trouble amid shrinking business, layoffs
Founded in 2009, Mapan, which facilitates community-based savings and lending, raised $15 million in a Series A round led by Patamar Capital and Astra Digital in 2022.
The global secondary market is undercapitalised and so is Asia’s: HarbourVest
Asia has been an important driver of alpha in our portfolios, and it will remain that way, Dominic Goh, Managing Director, HarbourVest Partners (Singapore) Pte Ltd, said.
Secondary investors in Asia face China uncertainty but show rising sophistication
The pressure on GPs to return capital has also risen substantially in part because of the high-rate environment today. And, LPs are struggling to gain clarity around China’s growth prospects or exit market.
The LP View: Mubadala sees India, China, Japan, and S Korea driving Asia investments
Mubadala is seeking to ramp up Asia’s contribution as it targets to double its overall assets under management by 2030.
The LP View: Middle East’s Hades Financial bets big on India, earmarks $500m for investments
Hades Financial has invested $150 million in Indian fund managers so far and it is in the process of establishing two distinct practices in the country as part of its fund-investing business.
India’s private equity giants gear up to raise big money amid turbulent times
India’s PE majors, which have seen several successful cycles of investments and exits, are set to leverage the current turbulent times to raise capital for some of their largest investment vehicles so far.
Crises at Paytm, BYJU’s spills over as India-focused investors tread with caution
Work on several late-stage deals has slowed down as investors want to relook at the protection and rights given to them by startup founders, in the event of a BYJU’s- or Paytm-like calamity.
