Indonesia-focused East Ventures raises $550m for early-stage, growth funds

East Ventures team. Photo courtesy of East Ventures.

Indonesia-focused venture capital firm East Ventures has raised a total of $550 million in the final close of its two funds.

East Ventures has closed its ninth fund for early-stage deals and its second growth-stage fund.

The firm will allocate $400 million to invest in growth-stage companies while utilising the rest for early-stage deals, according to East Ventures co-founder and managing partner Willson Cuaca.

The fundraising [for both vehicles] happened at the same time, Cuaca told DealStreetAsia.

Cuaca said the current uncertainty in the global market will not affect its strategy and pace of investments.  “Any sector in Indonesia is exciting and we want to do more. We will always be prudent and it works both in a good and a bad market,” he added.

“We are very bullish about Indonesia yet mindful of the global market condition. We have built a strong return track record for more than a decade, and as the ecosystem flywheel effect kicks in, East Ventures is well-positioned to ride on it,” Cuaca said in a statement.

East Ventures currently manages more than $1 billion in assets under management (AUM) and has attracted $6.7 billion in follow-on funding for its portfolio companies. The firm has invested in more than 200 companies and recorded over $86 billion of annualised gross merchandise volume (GMV) through its portfolio.

Some notable companies in its portfolio include Tokopedia, Traveloka, Ruangguru, Xendit, Sociolla and Waresix.

East Ventures is one of the most active VC firms in Southeast Asia. Earlier this month, the firm had invested in Moladin’s $95-million Series B funding round and in Pasarnow’s $9.5-million financing. To date, East Ventures has made at least 492 investments and scored 46 exits, according to Crunchbase.

East Ventures plans to double down its investments in the country and tap into the rapid digitalisation trends. 

“We saw the IPOs of some of Indonesia’s largest tech companies recently a significant milestone in paving the way for other startups in the country to follow suit,” according to its managing partner Roderick Purwana.

East Ventures’s latest funds have secured commitments from existing investors (limited partners in its vehicles) with a re-up rate of 120%.

“We are honoured to double down our investment in East Ventures through the latest Fund,” said Shinichiro Hori, managing partner of Z Holding Group, which has partnered with the VC firm since 2018. Z Holdings is the internet subsidiary of SoftBank Group.

Its other LPs include sovereign wealth funds, institutional investors, corporates, family offices and global investors.

East Ventures’s fundraising milestone comes at a time when Southeast Asian venture capital firms recorded 21 final closes in 2021, nearly double the previous year’s tally, on the back of a recovery in risk appetites of limited partners and an improving exit outlook. While the number remains below pre-pandemic levels, it indicates that the overall fundraising landscape is improving, notes the latest report from DealStreetAsia – DATA VANTAGE.

Meanwhile, Indonesia-focused Alpha JWC closed its Fund 3 at $433 million last year compared to its initial $250-million target. The close was the largest final close by a Southeast Asian VC firm in 2021, according to data compiled by DealStreetAsia DATA VANTAGE.

And, Jakarta-based early-stage investor AC Ventures closed its Fund 3 at $205 million in December last year, compared with an original target of $80 million.

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